MASTER 
NEGATIVE 

NO.  95-82395 


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Author: 


Duff,  Peter 


Title 


Duffs  book-keeping,  by 
single  and  double  entry 

Place: 

New  York 

Date: 

1871 


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MASTER   NEGATIVE   # 


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Duff,  Peter,  1802-1869. 

Duff's  book-keeping,  by  single  and  double  entry.  Prac- 
tically illustrating  merchants',  manufacturers',  private 
bankers',  railroad,  and  national  bank  accounts  ...  By 
P.  Duff  ...  20th  ed.,  enl.  and  rev.  New  York,  Harper  & 
brothers,  186&.    1871. 

i39a  pr-  illus.  (forms)     25**". 
400  p. 

Pages   399-400  conaist  of  advertising  material. 
1.  Bookkeeping. 

/^  6-33126 

Library  of  Congress  HF5635.D86 


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DUFF'S 


BOOKKEEPING. 


BY 


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PRACTICALLY   ILLUSTRATING 

MERCHANTS',  MANUFACTURERS',  PRIVATE  B 
ROAD,  AND  NATIONAL  BANK  ACCOU 

INCLUDING  ALL  THE  LATE  IMPROVEMENTS  I 


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SCIENCE. 


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By     I>.    duff. 

FORMERLY    MERCHANT, 
FOUNDER    ANT)    PROPRIETOR   OF    DUFF's    MERCANTILE    COLLEGE,  OF   PITTSBURGH,  PA. 


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Ii€t  no  man  enter  into  business  while  ho  ie.igqorar/t  of  the  nio.nher  ^f  *-f^{,ul  ttlng  books.  Never  hit  him  imagine  that  any  de- 
gree of  natural  ability  will  supply  the  deficiency,  or  preserve  multiplicitv  of  affairs  ^ron  inextricable  confusion.— Db.  Jomrsoir. 


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TWENTIETH  EDITION,  ENLARGED  AND  REVISED. 


NEW  YORK: 
HARPER  &   BROTHERS,   PUBLISHERS. 

FRANKLIN    SQUARE. 

1870. 


Ir 


I 


DUFF'S  BOOKKEEPING. 


Mcnl/^oi'^ery  Library 
of  Accountancy 

9 


Entered  according  to  Act  of  Congress,  in  the  year  1867,  by 

P.    DUFF, 

in  the  Clerk's  Office  of  the  District  Court  of  the  United  States  for  the  Western  District  of  Pennsylvania. 


.,^  Blank  books,  ruled  complete  to  match  this  work,  manufactured  by  R.  C.  ROOT,  ANTHONY  &  CO.,  Stationers  and 
Account-Book  Manufacturers,  21  Nassau  Street,  New  York.  These  books  are  made  of  fine  extra  size-paper,  with  the  author's 
directions  to  teachers  printed  upon  each  cover. 


STEREOTYPED  BT  MACKELLAR,  SMITHS  *  JORDAN, 
PHIIJU>ELPHIA. 


•  •     •    .' 

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REMARKS    UPON   THE   TWENTIETH    EDITION. 

The  early  editions  of  this  work  were  the  result  of  nearly  twenty  years'  accumulated 
experience  in  American  and  European  commerce;  and  there  is  no  undue  assumption 
in  asserting  that  it  introduced  improvements  in  Commercial  Education  previously  un- 
known in  schools.  Experienced  business  men  in  all  quarters  promptly  sanctioned  these 
improvements ;  and  the  Legislature  of  Pennsylvania  recognized  the  public  value  of  them, 
in  promoting  the  ends  and  purposes  of  Commerce,  by  granting  the  author  an  Act  of 
Incorporation,  with  perpetual  Charter,  for  establishing  one  of  the  first  Commercial  Colleges 
in  America. 

The-  favorable  reception  and  extensive  sale  of  the  former  impressions,  have  induced 
the  author  to  prepare  a  new,  revised  and  enlarged  edition,  in  which  he  has  spared  neither 
labor  nor  expense,  having  added  nearly  two  hundred  pages  of  new  matter,  including  a 
full  set  of  Joint  Stock  Bank  Books,  exemplifying  all  the  changes  required  for  conducting 
bank  accounts  under  the  new  National  Banking  law,  now  adopted  by  nearly  all  American 
banks.  He  has  also  given  all  the  most  approved  forms  of  modern  Railroad  accounts ;  and, 
as  no  system  of  accounts  has  yet  appeared  for  the  use  of  Private  Bankers,  he  has  added  a 
full  set  of  books  expressly  adapted  to  their  business. 

The  work  now  includes  all  the  improvements  for  assisting  the  teacher  and  perfecting 
the  education  of  the  Commercial  Student,  suggested  by  upwards  of  twenty-seven  years' 
daily  experience  in  instructing  large  classes  in  this  branch  of  education. 

Referring  to  the  testimonials  appended  to  its  pages,  he  feels  confident  that  €lerks, 
Merchants,  Bankers,  and  all  persons  who  buy  or  sell,  or  have  any  thing  to  do  with 
accounts,  will  find  the  study  of  this  work  contribute  to  their  advancement.  In  this  hope, 
it  is  again  respectfully  submitted  to  the  public  by 

The  Author. 


DUFFS  BOOK-KEEPING. 


INTRODUCTORY  REMARKS  UPON  THE  FIRST  EDITION. 

To  Merchants  : — 

In  announcing  a  new  work  to  the  public,  it  is  obviously  the  writer's  first  duty 
to  state  to  his  readers  wherein  he  offers  improvements  in  the  subject  upon  which  he  treats. 
The  author's  objects  in  adding  to  the  publications  upon  this  subject  are  briefly  these : — 

First.  To  provide  instructors  with  the  means  of  imparting  more  perfect  and  practical 
instruction  than  can  be  given  from  any  work  now  in  use. 

Second.  To  introduce  several  new  and  important  modern  improvements,  having  for  their 
object,  the  abbreviation  of  the  process,  and  greater  security  against  error. 

Third.  To  supply  all  classes  of  merchants,  mechanics,  &c.,  with  a  complete  book  of 
reference.  Nearly  all  the  works  now  in  use  being  prepared  almost  exclusively  for  the  use 
of  the  wholesale  merchant,  leaving  the  mechanic  and  retailer  with  no  other  assistance  than 
such  as  they  can  draw  from  books  prepared  for  another  department  of  commerce — a  fact 
which  may  account  for  the  imperfect  knowledge  of  book-keeping  among  certain  classes 
of  traders.  - 

Among  houses  conducting  the  more  extensive  and  complicated  operations  of  commerce, 
irregularity  in  the  management  of  their  accounts  is  now  becoming,  perhaps,  a  rare  occur- 
rence. The  conductors  of  such  establishments,  no  doubt,  strongly  impressed  with  the  disas- 
trous consequences  of  any  confusion  in  this  department,  take  effectual  means  to  guard  against 
it,  by  informing  themselves  of  the  most  accurate  and  most  improved  methods  of  manage- 
ment. But  this  is  far  from*being  the  case  among  the  middle  and  smaller  class  of  dealers 
and  mechanics.  The  frequent  failures  among  thein  often  disclose  the  most  culpable  igno- 
rance and  negligence  in  the  management  of  their  accounts :  and  as  the  extensive  dealers 
are,  themselves,  often  among  the  severest  sufferers  by  these  events,  they  should  consider  it 
their  duty  to  make  proper  inquiry  into  the  business  qualifications,  as  well  as  the  solvency 
and  integrity  of  those  to  whom  they  extend  confi^dence.  And  they  should  use  their  influence 
to  impress  it  strongly  upon  the  minds  of  such  persons,  that  the  want  of  that  knowledge, 
which  is  to  be  obtained  alone  from  systematic  accounts,  must  always  more  or  less  increase 
the  hazard  of  ultimate  miscarriage  in  business ;  and  that  it  is,  therefore,  the  first  and  most 
obvious  duty  of  every  dealer  and  trader,  small  and  great,  to  keep  a  precise  and  methodical 
account- of  his  transactions.  If  young  merchants  had  one-tenth  part  of  the  author's  expe- 
rience in  winding  up  and  adjusting  deranged  books  of  account,  especially  in  partnership 
business,  they  would  guard  against  confusion  in  their  books  with  as  much  vigilance  as  thej 
do  against  fire  or  shipwreck. 

In  some  countries,  this  duty  of  the  merchant  is  watched  over  by  the  government,  and 
enforced  by  many  anxious  legislative  provisions.*  But  with  us  it  is  left  to  be  impressed 
solely  by  public  opinion ;  and  by  the  dread  of  that  reproach,  loss  of  credit  and  loss  of  cha- 
racter, that  must  ever  follow  the  detection  of  ignorance  and  irregularity  in  the  manner  of 
recording  business  transactions. 

*  The  French  Code  de  Commerve  L^ivcs  a  minute  description  of  the  sevieral  books  which  every  trade^mau 
*  must  keep. 


,11 

1.  » 


•*.  I 


DUFFS  BOOK-KEEPING. 


TO  TEACHERS. 


This  work  is  divided  into  two  parts ;  the  first  part  containing  in  a  cheap  and  conve- 
nient fonn  for  teachers,  a  complete  course  of  instruction  and  practice  upon  Single  and  Double 
Entry,  embracing  all  that  is  necessary  for  the  learner  to  understand  thoroughly,  before  he 
attempts  to  write  in  business  books. 

The  SECOND  PART  is  designed  for  the  assistance  of  merchants  and  accountants  in  the 
counting-room.  Both  parts  may  be  had  bound  together,  or  the  first  part  in  a  separate  volume 
when  required. 

This  work  is,  by  its  minuteness  and  simplicity  of  illustration,  intended  to  assist  the  learner, 
and  thereby  to  assist  his  teacher.  No  pains  have  been  spared  to  bring  down  the  principles 
of  the  science  to  the  level  of  the  humblest  capacity.  In  perusing  the  work,  persons  unac- 
quainted with  the  labors  of  the  class-room,  will  perhaps  be  struck  with  the  repetition  of  re- 
ferences, back  to  the  same  rules  and  definitions ;  but  those  who  understand  the  art  of  direct- 
ing the  progress  of  the  human  mind — experienced  preceptors — know  well  how  much  success- 
ful and  efficient  instruction  depends  upon  making  those  principles  already  acquired  explain 
new  difficulties. 

It  has  always  been  my  opinion,  that  a  course  of  school  instruction  in  Book-keeping  might 
be  so  framed,  that  the  teacher  would  have  little  to  do  but  to  see  that  his  pupils  followed  the 
directions  laid  down  for  their  guidance,  which  should  leave  them  no  means  of  getting  through 
the  exercises  without  mastering  the  subject.  And  if  teachers  would  strictly  follow  my  direc- 
tions, in  teaching  from  this  work,  I  shall  be  satisfied  to  allow  an  impartial  examination  of 
their  pupils  to  stand  as  a  test  of  the  merits  of  this  attempt  to  effect  that  purpose. 

The  teacher  will  of  course  instruct  those  persons  only  in  Single  Entry  who  purpose  to 
keep  their  books  in  that  way  and  who  desire  to  learn  the  science  no  farther.  Those  who 
learn  the  science  upon  the  Double  Entry  principle  always  understand  Single  Entry;  it 
therefore  requires  no  attention  from  the  Double  Entry  student,  except  a  perusal.  The  in- 
troductory set  of  the  Double  Entry  course  is  only  intended  for  those  having  no  previous 
knowledge  of  the  subject.  Those  who  are  partially  acquainted  with  it,  may  commence  with 
the  rules  and  oral  exercises  on  page  38.  In  this  set  they  will  obtain  a  full  knowledge  of  all 
the  principles  of  the  science. 

To  persons  engaged  in  business,  time  is  often  a  great  consideration.  To  such  persons  you 
can  give,  from  this  treatise,  a  perfectly  effective  course  of  instruction  by  omitting  all  writing 
except  the  Journal  and  Ledger.  Direct  them  to  journalize  the  transactions  from  the  printed 
Day  Book.  But  all  the  other  directions,  in  reference  to  the  oral  exercises  upon  the  rules 
and  the  auxiliaries,  oral  journalizing,  &c.,  must  be  strictly  carried  out  to  ensure  thorough 
instruction. 

The  two  sets  of  books  embraced  in  the  second  part,  though  diiTerent  in  form,  comprehend 
no  departure  from  the  governing  principle  of  the  science,  and  will  not,  therefore,  be  difficult 
to  acquire  by  those  who  are  well  versed  in  the  principles  of  the  science.  But  I  would  re- 
commend a  course  of  exercise  upon  them,  before  attempting  to  put  them  in  practice  in 
business. 

In  transcribing  our  Single  Entry  Day  Book,  or  any  of  those  books  where  our  Ledger 
folios  are  inserted  as  post  marks,  the  learner  must  be  cautioned  to  leave  the  columns  blank, 
to  insert  his  own  post  marks. 

Farther  directions  for  teaching  will  be  found  interspersed  throughout  the  work,  whenever 
they  are  deemed  necessary  to  guide  the  instructor  in  his  progress. 


New  Yobk,  Augtui,  1866. 


6 


SINGLE  ENTRY 

BOOK-KEEPING, 

EXEMPLIFIED  IN  A  PARTNERSHIP  BUSINESS,  CONCLUDING  WITH 

AN  ILLUSTRATION  OF  THE  PARTNERSHIP  SETTLEMENT 

AND  DIVIDEND  OF  THE   PROFITS. 

PRESENTING,  ALSO,  THE  REQUISITE  STEPS  FOR  TRANSFORMING  THE  SAME 

LEDGER  INTO  A  DOUBLE-ENTRY  ONE. 


PEELIMINARY    REMARKS. 

It  may  perhaps  be  asked  why  Book-keeping  by  Single  Entry  is  presented  in  a  work 
containing  the  explanation  of  the  science  by  Double  Entry,  since  the  acquirement  of  the 
latter  must  necessarily  bring  a  knowledge  of  the  former.  This  is  perfectly  true ;  and  I 
have  embodied  my  views  in  reference  to  it,  in  my  directions  to  the  teacher,  on  the  last  page. 
Those  who  have  the  means,  capacity,  and  inclination  to  learn  the  science  upon  the  double 
entry  principle,  will  not,  therefore,  do  more  than  merely  peruse  this  set,  for  I  do  not  imagine 
that  any  person  thoroughly  versed  in  the  double  entry  process  will  ever  keep  his  books  in 
any  other  way.  But  it  is,  at  the  same  time,  equally  certain,  that  there  is  a  large  class  of 
persons,  both  in  town  and  country,  such  as  farmers,  mechanics,  retailers,  milliners,  and 
other  dealers,  who,  for  various  reasons,  are  not  inclined  to  keep  their  accounts  by  double 
entry ;  and,  as  every  person  who  buys  or  sells  any  thing  must  keep  accounts  in  some  way, 
the  author  feels  confident  that  the  following  illustration  of  this  simple  but  useful  form 
of  accounts  will  prove  serviceable  and  acceptable  to  this  class  of  dealers.  The  managers 
and  teachers  of  public  schools  will  also  find  it  worthy  of  their  attention ;  for,  however  limited 
a  young  man's  education  may  be,  a  knowledge  of  Book-keeping,  to  this  extent  at  least, 
should  form  a  part  of  it.  In  this  set  will  be  found  a  practical  illustration  of  a  process  not 
to  be  found  in  any  other  work  that  we  have  seen — transforming  the  Single  Entry  Ledger 
into  a  double  entry  one.  All  simple  as  this  process  may  appear  after  it  is  explained,  it  will 
be  found  that  many  accountants  are  not  aware  that  there  is  any  way  of  changing  the  prin- 
ciple of  keeping  the  books  but  by  the  laborious  and  tedious  process  of  transferring  all  the 
accounts  to  a  new  Ledger, — an  operation  that  is  seldom  necessary  until  the  old  Ledger  is 
filled. 


GENERAL  RULES  FOR  DEBITING  AND  CREDITING  ACCOUNTS. 


1.  Give  the  Rule  for  opening  books 

in  private  business. 

2.  Give  the  Rule  for  opening  books 

in  partnership  business. 

3.  When  is  a  person  Dr.  ? 


4.  When  is  a  person  Cr.  ? 


5    What   is    the    rule    respecting 
orders,  bills,  drafts,  &c.  ? 

6.  Which   side  of  the   Ledger  is 
*        used  for  the  Drs.  and  Crs.  ? 


1.  I  credit  the  stock  account,  which  represents  my  own 

name,  for  what  I  invest  in  business,  and  if  I  owe 
any  thing  I  debit  it  for  the  amount. 

2.  I  credit  each  partner  for  what  he  pays  in,  and  debit 

him  for  what  he  draws  out. 

3.  When  he  gets  into  my  debt,  he  is  Dr.  for   the 

amount,  and 
When  I  get  out  of  his  debt,  he  is  Dr.  for  what  I 
pay  or  cease  to  owe  him. 

4.  When  I  get  into  his  debt,  he  is  Cr.  for  the  amount,  and 
When  he  gets  out  of  my  debt,  he  is  Cr.  for  what  ho 

pays  or  ceases  to  owe  me. 

5.  Credit  a  person  always  when  you  draw  on  him  on 

your  own  account,  and  debit  him  when  he  draws 
on  you. 

6.  The  Drs.  always  on  the  left,  and  the  Crs.  always  on 

the  right. 

7 


M 


SINGLE  ENTRY  BOOK-KEEPING. 

NAMES,  DESCRIPTION,  AND  USES  OF  THE  BOOKS  REQUIRED. 

The  Day  Book  and  Ledger  are  the  only  books  generally  used  in  this  mode  of  keeping 
accounts.  If  Bill  Books,  or  any  other  auxiliaries,  should,  in  any  case,  be  required,  the  form 
and  directions  for  keeping  them  will  be  found  in  our  Double  Entry  Set  (p.  45).  I  would, 
however,  recommend  Single  Entry  Book-keepers  to  keep  a  Cash  Book,  and,  in  some  cases, 
a  Cash  Sales  Book.  In  order  to  make  these  books  thoroughly  understood,  we  subjoin  an 
exemplification  of  each,  in  connection  with  each  other,  and  with  the  following  Day  Book. 


SINGLE  ENTRY  BOOK-KEEPING. 


We  begin  with 


THE  CASH  SALES  BOOK. 


In  this  book  is  recorded  a  detailed  account  of  all  sales  for  ready  cash  j  also  for  cash 
received  for  sales  entered  upon  the  Day  Book,  and  collected  before  posting  to  the  Ledger — 
see  third  Day  Book  Entry,  Sept.  10,  p.  10.  From  this  book  the  amount  is  transferred 
weekly  to  the  Cash  Book,  or  as  much  oftener  as  we  wish  to  balance  that  book,  at  the  same 
time  noting  the  amount  on  this  book — "  Ent'd  C.  B.,  p.  00."  This  is  more  convenient  than 
the  common  way  of  entering  every  sale  upon  the  Cash  Book,  or  entering  them  first  upon  a 
glate — a  practice  that  can  never  be  reqommended,  as  it  is  about  the  same  trouble  to  write 
upon  slate  as  upon  paper,  and  all  future  reference  to  entries  made  in  this  way  is  forever 
prevented  by  rubbing  them  out.  When  the  nature  of  the  business  renders  it  too  difficult 
to  keep  a  record  of  every  sale,  the  usual  course  is  to  keep  the  money  received  for  sales  during 
the  day  in  a  drawer,  separate  from  that  entered  in  the  Cash  Book,  and  to  count  it  out  and 
enter  it  in  one  sum  in  the  evening  *'  Rec'd  for  sales  this  day." 

The  following  illustration  will  sufficiently  explain  the  nature  and  use  of  this  book  : — 

NEW  YOBK,  September  1st,  1866. 


1866. 

Sept. 


5 


8 

9 

11 
15 

16 

18 
20 


25 
27 
29 


Sold  for  Cash,  viz. — 
1  Vest  and  2  pr.  Pants, 
4  yds.  Fine  Blk.  Cloth,  @  $6, 
1  Silk  Hat,  S5.     Box,  25  cts.,* 
1  pr.  fine  Boots,  S6.     Silk  Hat,  $5, 
1  Mahogany  Sofa, 

1  Dining  Table,  850.     1  Toilet  do.,  $10, 
1  Rosewood  Piano, 
Music  Stool, 


to  R.  Carpenter, 
J.  Manly, 

J.  Toole, 
do. 
F.  Le  Roy, 


Sold  for  Cash, — 

1  Saddle,  815.     Bridle,  82, 
1  Gig  Harness  complete, 

1  Travelling  Trunk, 

2  Leather  Hat-boxes, 

1  Bbl.  Flour,  and  cartage, 


Entered  Cash  Book,  p.  1. 

R.  Trotter, 
do. 


F.  Howe, 
Ent'd  Cash  Book,  p.  1. 


Mrs.  Mason, 


Sold  for  Cash, — 

2  Braid  Bonnets, 

1  Velvet  Bonnet,  88.     Ribbon  and  trimming,  84, 

Making  2  Silk  Bonnets, 

Making  a  Mantilla,  84.   4  yds.  Fringe  for  do.,  84,   Mrs.  Hill, 

4  Lace  Collars,  @  84, 

Ent'd  Cash  Book,  p.  1. 
Sold  for  Cash. — 

1  Silver  Watch,  No.  4445,  Samuel  Gray, 

Repairing  a  Gold  Repeater,  G.  W.  Smith, ' 

Engraving  1  dozen  Tablespoons,  F.  Robb, 

Ent'd  Cash  Book,  p.  1. 


22 
24 

5 

11 

20 

60 

150 

5 


17 

14 

12 

3 

6 


12 

12 

5 

8 

16 


*  When  a  sale  is  made  to  an  unknown  person,  the  name  may  bo  left  blank. 

8 


40 
2 
1 


25 


50 


297 


25 


52 


53 


25 


43 


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NEW  YOBK,  Monday,  Ist  September,  1866. 


P.  Duff  and  William  Gordon  having  this  day  entered  into  copart- 
nership under  the  firm  of  Duff  &  Gordon,  they  pay  as  capital 
as  follows : — 
*  P.  Duff  is  credited  for — 

Cash  paid  in  per  Cash  Book       ....     1100. 

James  Wood  owes  him  on  account  .         .  200. 

'David  Cutler  owes  him  on  his  note  .         .         •       150- 


II 


James  Wood  (Carpenter),         Dr.* 

For  the  above  balance  due  P.  Duff 
_ //         

W.  Gordon  is  Cr. 

For  Cash  paid  in  per  Cash  Book     .         .         .         . 
u    Balance  due  him  from  K.  Martin,  270  Bowery 
n    Merchandise  and  Store  fixtures  per  Inventory* 


900. 
95. 

890. 


1450 


200 


Paid, 
Sept.  15. 


Returned 
Sept.  22 


} 


Kobert  Martin  (270  Bowery),  Dr. 

For  the  above  Balance  due  W.  Gordon     . 

n         • — 

William  Gordon,  Dr. 

For  bal.  due  by  him  to  Wm.  Hay  assumed  by  firm 
ti  n  »         T.  P.  Cope  &  Sons,  de.         .    __ 

_ ^         

William  Hay,  Cr. 

For  balance  due  him  by  W.  Gordon  as  above 

_ If         

T.  P.  Cope  &  Sons,  Cr. 

For  the  above  balance  due  them  by  W.  Gordon 

=======       10.      ===== 

James  Wood,  Cr. 

For  his  bill  of  Carpenter  work  for  repairing  store 

_ n         _— — 

James  Wood,  Dr. 

For  amt.  paid  his  order  for  Merchandise  to  John  Toole 

— n 

Dr. 


250. 
265. 


1885 


95 


'Frederick  Howe, 

For  1  barrel  Fine  Flour,     (Cartage,  25  cts.)         .         ... 

•  20.      =====- 

James  Carter,  Dr. 

For  lib  Tea.  $1 ;  121b  Sugar,  $1 ;  lib  Kaisins,  25,       $2  25 
«r  1  bag  160R)  Rio  Coffee        .        .         .     @  10.    J^ 


♦Robert  Manly, 

For  1  best  Silk  Hat 


James  Day, 

For  Cash  on  account 


Dr. 

11 
Dr. 


1.  Dnff  is  here  credited  for  the  reasons  given  in  Rule  2. 

2.  Cutler  is  not  debited  on  book  account  for  this  sum,  because  we  hold  his  note  for  it. 

3.  We  do  not  require  to  open  an  account  with  Howe  for  this  entry,  because  it  was  paid  be- 

fore posting. — See  Cash  Sales  Book. 

4.  If  he  had  returned  this  after  posting,  we  must  then  credit  him  for  the  amount,  when 

returned,  on  the  Day  Book,  and  afterwards  post  as  usual. 
*  The  form  of  an  inventory  can  be  seen  on  pages  59  and  61. 

10 


515 


250 


265 


105 


12 


18 


/ 
25 


25 


25 


September  30th,  1866. 


T.  P.  Cope  &  Sons, 
For  bill  remitted  them 


Dr. 


2 


1 


William  Hay, 

For  amount  of  bill  remitted  him 


Dr. 


Robert  Barclay, 

For  4  yds.  Satin  Ribbon, 
//    1  pr.  Silk  Gloves, 
//    16  yds.  Fig'd  Satin, 


=   Oct.  5. 
Dr. 


@  50  cts.,    S2 


.76 


@  1  50,    24. 


^William  Hay  (to  close  acct.),       Dr. 
For  our  order  on  James  Wood      . 

Cr. 


James  Wood, 

For  the  above  order 


Dr. 


James  Wood,  

For  1  pr.  Waterproof  Boots,  $6.     1  Silk  Hat,  $5, 

-  10.       == 

*  Robert  Barclay,  Dr. 

For  Sundries   .... 

-       — If  

'James  Carter,  Dr. 

For  1  Fine  Black  Dress  Coat         .         .        .         , 

//    1  full  circle  Cloak,  velvet  trimmed     .- 
Received  cash  on  account  of  the  same  . 
Balance  to  his  debit 

20.       === 


$28. 
45.    73. 

.    50. 


Jas.  Wood  (per  order  to  J.  Pine),  Dr. 

For  1  barrel  Fine  Flour, ^g  59 

//    1  gal.  Molasses,  50  cts.  lib  Tea,  75  cts.  lib  Pepper,  25  cts.,  \M 

Per  bill    :         : 


P.  Duff, 

For  1  Velvet  Vest, 


—  If __ 

Dr. 

1  Fine  Black  Dress  Coat,  $28, 

—  #  — 

Dr. 


W.  Gordon,  

For  1  pr.  Ladies'  Boots,  $2.     1  pair  Men's  do.,  $6.50 


James  Carter, 

For  his  invoice  of  Flour, 


Robert  Barclay, 

For  his  invoice  of  Cloths,  &c. 


30. 

Cr. 

Cr. 

• 

w 
Dr. 


James  Day,  _ 

For  a  full  suit  of  Clothes,  $35.     A  f  circle  Cloak,  $30 


11 


200 


200 


26  75 


50 


50 


11 


23 


8 


36 


8  50 


258 


150 


65 


1 

I 


November  Ist,  1866. 


1 ;  1  Robert  Martin  (to  close  acct.),     Cr. 
For  his  invoice  of  Silks   . 
//    cash  in  full  .         •         •         • 

5. 


67. 
28. 


2 


Robert  Barclay,  ^^• 

For  30  barrels  Superfine^ lour 

T.  P.  Cope  &  Sons,  ^^- 

For  om  note  in  full  for  balance  of  account   . 


.     @«6. 


// 


2    ^Robert  Barclay  (to  close  acct  ),    Cr. 

For  his  note  for  balance  of  his  account  in  foil  ^ 

=       10.       =~ 


65 


81    75 


Robert  Martin,  o^ih.     ^^" 

For  1  barrel  of  Sugar,  24m.      ^^^^  ^^^^^         ^  ^^^^       ^^^ 

„    2R,  Sperm  Candks"     .         •       ___@m^^-^^^ 

. ■ —  n 

'    '•  Jor'r rlti:;  of  Dry  Goodstd  Groceries  .        •      *800- 

Less  paid  them  on  account  cash  •         •         '    .     *    j-.  " 

^  Balance  to  their  credit 

-  20.       ===--========== 

sRobert  Evans  (Buffalo),  Dr.  %  ^  «l«»i^« 


11    75 


500 


For  12  pair  Waterproof  Boots      • 

„    2-1  "  "  ^^^^^  ' 

I,    24    "    Boys'  Shoes 

//    Packing  Case  and  Cartage  . 

— :  It 

Dr. 


(g$8. 
6. 
1.25 


96. 
144. 
30. 
1.25 


271  [25 


.  -r  n    ^  UT.  (^3  months. 

2    James  Carter,  ,  ^i  ,,  vr    i  oqc    9A» 

Forlps.S.FineKackCloth,No.l288.  ||^^„^,^   @,,.  .^OO. 

"„  End       »      Green    »  1320.  7    "  3.       21.^^ 

w   Wrapper  and  Cartage  .         •         •  —^ZZ— 

^,,^,=,==JL=============       30.        === 

Robert  Martin,  ^^' 


rrhrs  account  of  Hosiery  against  WiUiamGordon 

Dr. 


*  William  Gordon, 

For  amount  assumed  with  R.  Martin,  as  above, 


// 
Cr. 


^  '  •'X  3  months'  wages  from  1st  Se^p't.  to  dat.,  as  foreman,  @^fmo. 


Dr. 


Mames  Day,  t^  n  «, 

For  Cash  on  account  Forty-one  Dollars 


James  Day. 


2 


150 


41 


:|SKvs|SrS5r:HSSa'-":.-..-...~-. 

1^ 


December  1st,  1866. 


2 


James  Day  (to  close  acct.). 
For  cash  in  full  . 


Dr. 


40. 
21. 


19 


61 


. tt 

P.  Duff,  Dr. 

For  a  Winter  Frock,  $35.     Hat,  $5 
//    Cash  paid  George  Cutler's  bill 

n  _- "  . 

P.  Duff,  Cr, 

For  Cash  Received  for  his  bill  on  Gibson,  Bright  &  Co.,  London    .         988 

—  10.  li 

T.  p.  Cope  &  Sons,  Cr.  i 

For  their  invoice  of  Broad  Cloths  and  Silks       ....  2000 

. . — -^  H 

William  Hay,  Cr. 


For  his  invoice  of  Prints,  &c. 


-  15. 

James  Wood,       per  Mrs.  W.        Dr. 
For  20  yards  Figured  Silk 
«/    16     H      English  Prints 


800 


1.50    30. 
25      4. 


Cr. 


James  Wood, 

For  his  bill  of  new  door  and  window  shutters    . 

=-===========  :  20.    ===== 

W.  Gordon,  Dr.. 

For  12  yards  Fine  Black  Cloth     .... 

-— ~—   ■  a 

James  Wood  (to  close  acct.),         Cr. 

For  8  yards  Prints  returned,  $2.     Cash  in  full,  $71    . 


@$6. 


31. 

Dr. 


P.  Duff, 

For  Cash  paid  House  Rent  to  date,  $140.     Taxes,  $17.88 

//  . 

William  Gordon,  Dr. 

For  Cash  paid  House  Rent  to  date,  $100.     Taxes,  $4.13    . 


STATEMENT  exhibiting  our  Profits  and  Dividends. 


P.  Duff f.  1 

W.  Gordon       ........// 

Robert  Martin u 

Wm.  Hay 2 

T.  P.  Cope  &  Sons // 

James  Carter // 

Robert  Evans       .......  // 

Cash 3 

Merchandise u 

Bills  Receivable n 

Bills  Payable ^ 


Surplus  effects 
P.  Duff's  half  gain  to  his  credit  . 


1  I  W.  Gordon's 


to  his  credit 


13 


Effects. 


Liabiliti«t. 


254 

88 

2438 

701 

88 

1885 

11 

76 

2 

800 
2500 

262 

60 

258 

271 

25 

3634 

75 

3368 

26 

81 

75 

65 

25 


8582   01 
7948 ;  25 


7948    26 


633    76 


34 


37 


72 


78 


157 


88 


104   13 


316    88 
316  i  88 


REMARKS  UPON  THE  DAY  BOOK. 

All  onr  transactions  are  generally  first  entered  upon  the  Day  Book;  hence  it  is  called » 
the  book  of  original  entries,  and  is  always  referred  to  when  full  particulars  or  explanations 
are  called  for.  It  is  therefore  obvious  that  all  copying  into  it  from  slates  or  waste  pieces  ot 
paper  ^is  liable  to  destroy  its  testimony.  If  the  nature  of  the  business  requires  original 
entries  to  be  made  upon  Time  Registers  or  other  memorandum  books,  these  books  ought 
always  to  be  paged  and  the  Day  Book  entry  should  show  its  reference  to  them. 

Pass-books  are  often  useful  between  persons  having  very  frequent  transactions  with  each 
other :  but  we  must  caution  the  Accountant  against  placing  any  dependence  upon  another 
person's  pass-book.     His  Day  Book  must  record  every  transaction  as  if  no  such  book 

existed 

Though  the  preposition  To  is  correctly  used  in  their  Journal  by  Double  Entry  Book- 
keepers, yet  in  the  Single  Entry  Day  Book  the  expression  is  unmeaning  and  ungram- 
matical.  I  have  therefore  substituted  For,  as  more  correct  and  agreeable  to  the  idiom  ot 
our  lancnia^e.  As  you  post  the  entries  from  the  Day  Book  to  the  Ledger,  'insert  the  page 
of  the  Ledger  in  the  marginal  column  on  the  left  of  the  page.  This  serves  as  a  post  mark, 
and  shows  how  far  your  posting  is  completed.  You  must  afterwards  ^compare  all  the 
entries  in  the  Ledger  with  those  in  the  Day  Book,  check-marking  them  thus j/  with  a 
pencil  both  on  the  Day  Book  and  Ledger.  No  person  can  expect  to  keep  his  books  per- 
fectly correct  without  this  precaution. 

ON  OPENING  THE  LEDGER. 

The  following  Ledger  is  ruled  in  the  common  form,  and  it  is  the  most  suitable  for  any 
kind  of  business.  The  page  is  divided  by  a  perpendicular  line  making  what  is  called  a 
folio  or  if  the  paper  be  small  it  will  be  better  to  take  two  pages  for  a  folio.  The  space 
intended  for  each  person's  Account  is  headed  in  large  text  hand  with  his  naine,  or,  it  it  be 
a  firm  with  its  legal  title.  Every  Account  occupies  both  folios,  the  left  or  Dr.  side  repre- 
sentin'^  ^our  Account  against  him,  and  the  right  or  Cr.  side  «his  Account  agamst  us.  Ihe 
diff-erence  represents  Uhe  Balance  we  owe  him  or  which  he  owes  us,  as  the  case  may  be. 
The  abbreviations  Dr.  and  Cr.  are  « never  required  except  at  the  head  ot  the  page,  in 
opening  a  business  Ledger  always  index  each  Account  before  you  head  it,  as  an  omission  m 
the  Index  often  causes  much  trouble  and  sometimes  mistakes.  In  business  the  Index  gene- 
rally has  a  page  allotted  to  each  letter  of  the  alphabet.  The  following  illustration  will  here 
be  sullEicient  to  explain  it. 


INDEX  TO  THE  LEDGER. 


A. 

Barclay,  Robert    . 
Bills  Receivable 
Bills  Payable 
Balance  Account 
Cope,  T.  P.  &  Sons 
Carter,  James  . 
Cash 

Duflf,  P.    . 
Day,  James 


2. 
3. 
3. 
3. 
2. 
2. 
3. 
1. 
2. 


Evans,  Robert . 
Gordon,  William 
Hay,  William  . 
Martin,  Robert 
Merchandise     . 
Wood,  James 


1.  What  is  the  Day  Book  called?  ,  ^    •  .    .u    t.      u    v» 

2.  What  objections  are  there  to  copying  from  a  slate  into  the  Day  JSooKf 

3   What  is  to  be  done  as  you  post  the  entries  from  the  Day  Book  to  the  Ledger  r 

4.  ^Vhat  is  to  be  done  after  you  have  posted  the  Day  Book  into  the  Ledger? 

5.  What  does  the  left  folio  of  an  Account  in  the  Ledger  contain? 

6.  What  does  the  right  one  contain? 

7.  What  does  the  difference  represent  ? 

8  Whereare  the  abbreviations  Dr.  and  Cr.  reqnired? 

14 


2. 
1. 
2. 
1. 
3, 
13. 


Vr. 


P. 


1866. 

Oct. 
Deo. 


20 
1 

81 


For  Coat  and  Vest 

//    a  Coat,  $35.    Hat,  $5 

//   Cash  p'd,  Cutler's  bill 

n    Taxes  &  Rent      254.88 

Balance  fol. 


H 


4 
4 


36 
40 
21 

167 

2500 


2764 


88 


88 


What  is  to  be  done  with  this  and  the  following  account 

when  closing  the  Ledger  ? 
How  are  they  then  closed? 


DUFF. 


I860.  , 

Sept.  I  1  For  Sundries  paid  as  cap. 

Dec.      1  //    Cash  for  bill  on  Lond. 

i31  //   his  ^  net  profit     2438. 

^218112 


2754.88 
254.88 

9S0O. 


1.  They  remain  open  until  the  gain  or  loss  is  ascertained 

(see  Day  Book  3)  and  entered. 

2.  They  then  close  into  balance  like  any  other  account. 


WILLIAM 


1866. 

Sept. 

1  For  his  debts  assumed 

Oct. 

20     //    2  pr.  Boots 

Nov. 

30 

//    Martin's  bill 

Dec. 

20 

II    12  yds.  Cloth 

31 

//    Cash  p'd  taxes  &  rent 

701.88 

Balance             fol. 

616 

8 

2 

72 

104 

1500 


2201 


GORDON. 


50 
26 

13 


88 


ZZ.  I 


What  does  the  balance  entry  at  this  and  the  preceding  ac- 
count represent,  and  when  are  they  transferred  to  the 
balance  account? 

How  are  these  balances  found? 

How  are  they  disposed  of  in  re-opening  the  books  ? 


1866. 


iSept.    1  j  For  Sundries  paid  as  cap. 


Deo.   31 


//   his  J  net  profit 


1885. 
701 


1 

4 


- 


1885 
316    88 


^^ 

^.-1183.12 
316.88 

^'^^ 

1500. 

saoi.88 

701.88 
1500. 

- 

2201 

1.  They  represent  each  partner's  present  net  capital,  and  ar« 

the  last  transfers  to  the  balance  account. 

2.  By  taking  the  difference  between  the  two  sides  of  the  a«> 

counts  after  they  are  credited  for  their  share  of  the  gam. 

3.  These  balances  are  carried  to  the  respective  partaen' 

credit. 


ROBERT 


1866. 

Sept. 


Not. 


1  For  bal.  due  W.  Gordon 


10 


Sugar,  $11.    Candles,  75  j  3 


7.75 
us 


(270  Bowery.) 


MARTIN. 


1.  For  what  purpose  is  the  line  drawn  across  this  account 
under  the  $95. 


1866.  I      j 
Nov.     1  For  Sundries 


De|}. 

Dec. 


80 1  For  acct.  ag't  W.  Gordon    3 

ol  Balance  fol.    ;; 


95 


2  |25 

) .  50 


11    76 


1.  Because  the  payment  on  the  1st  November  squared  tk« 
account. 


^  ^f«*il^?®  balance  $9.50  at  the  credit  side,  and  what  is         2.  It  is  what' he  owed  us  when  balancing  our  books,  and  wiU 
^®  <ioo«  with  It  in  the  new  account  ?  ,| ,  be  carried  to  his  debit  in  reK)penini  them/ 


JAMES 


1866. 

Bept. 
Oct. 


1 1  For  bal.  due  P.  Duflf 
10 1  Paid  order  to  Toole 

6jPair  Boots,  $6.    Hat,  $5 
20!  Paid  on  order,  J.  Pine 


231. 

us. 

~~n. 


Nov.     1  Bal.  due  per  acct.  rend. 
Deo.    16  For  Silk,  $30.  Print, 


Forward,  fol.    3 


(Carpenter,  18  CUff.) 


WOOD. 


1.  What  is  the  meaning  of  the  above  balance  entry  of  $76? 
3S.  What  is  the  meaning  of  the  last  footing  of  this  account? 


1866.  j 

Sept.  10  For  bill  of  work  '  1 

Oct.      6  Our  order  favor  W.  Hay     2 

N'ov.     I     Bal.  to  debit  in  now  acct. 


Deo. 


16  For  bill  of  work 


Forward,  fol. 


I  o 
1  O 


105 

60 

7ii 


231 


8T 


37  I 


1.  It  was  the  balance  due  us  on  settlement. 

2.  When  an  account  fills  up,  always  reserve  a  line  at  the 

bottom  and  foot  both  sides  down  upon  the  same  line, 
noting  them  as  above,  "  Forward."— See  the  Account 
continued,  fol.  3- 


15 


WILLIAM 


HAY. 


Gr. 


1866. 
Sept. 
Oct. 


Dec. 


30  For  Bill  remitted 
6     H    our  order  on  Wood 


■]    IJalanco 


1.  Whv  was  this  account  footed  on  the  5th  October? 

2.  Why  is  the  above  $800  brought  down  to  credit  side? 


For  Bal.  due  by  Gordon 


For  Invoice  of  Goods 


For  Bal.  bro't  down 


250 


800 


800 


1.  We  balance  this  account  on  the  5th  October  for  the  rea- 
sons given  in  note  1,  at  R.  Martin's  account,  last  page. 

2.  This  is  the  way  the  account  re-opens  if  continued  on  this 
page. 


T.  P. 


(PMladelphia.)       COPE  &  SONS. 


1866. 
Sept. 
Nov. 


Dec. 


For  Bill  remitted 
//    our  note  in  full 

2 
8 

n 
O 

200 
65 

1 
1 

1866. 

'  Sept. 

1 

1 

Nov. 
Deo. 

1 

10 
10 

For  Bal.  due  by  Gordon 

1 

8 
4 

265 

• 

265 

265 

Culancc                        fol. 

2500 
2500 

For  Bal.  on  Invoice 
If    Invoice  of  Cloths 

500 
2000 

2500 

1 

JAMES 


CARTER. 


1866. 
Sept. 
Oct. 

Nov. 


20  For  Mdse.  per  Bill 
10     n    Bal.  on  Bill 
20     //    Invoice  of  Cloth 


262.50 

258. 

4.50 


■1 

1866. 

1 

1 

18 

25 

Oct.  |30 

2 

28 

Dec. 

8 

221 
262 

25 
50 

— 

II    Balance 


fol. 


3 


258 

4 


262 


50 
50 


ROBERT 


BARCLAY. 


im: 

Oet. 

Not. 


5  For  Mdse.  per  Bill 
10     //    Sundries 

6  //    Mdse.  per  Bill 


26 
25 

180 


76 


"m  76 


1866. 

Oct.  .30 1  For  Invoice  of  Cloth 


Not. 


//    his  note  in  full 


160 
81 


^gr 


75 
75" 


ROBERT 


(Buffalo.) 


EVANS. 


1866.1      I 

Nov.  20  For  Invoice  of  Shoes 


8 


271    25 


1866. 
Dec. 


•■>i 
•>I 


Balance 


fol.    3 


271 


26 


JAMES 


(Foreman.) 


DAY. 


T586" 

Sept  20  For  Cash  on  account 

Oct.    30  Clothes,  $35.   Cloak,  $30 

Not.  30  For  Cash 

Dec.     1,    #      * 


25 
66 
41 
19 


THJ^ 


1898: 


Nov.  30  For  3  mos.  wages  to  date    8 


16 


Br. 


JAMES 


WOOD. 


Cf. 


1866. 
Dec. 


Bro't  forw'd,     f.    1 


110 


110 


1866. 
Dec. 


Bro't  forw'd,  f.  1 
20  8  yds.  Print  ret'd,@  25  4 
//     Cash  in  full 


37 
2 

71 

110 


CASH 


ACCOUNT. 


4  ii   3634    75 


1866. 

Dec.  j  31  i  For  am't  on  hand 


1.  What  is  the  use  of  this  and  the  four  following  accounts  in 

Smglo  Entry  Book-keeping? 

2.  How  do  we  find  the  amount  of  cash  on  hand? 


1866. 

Dec.   t>i  .  Balance 


fol. 


1.  This  and  the  four  following  accoiuits  are  never  opened  m 

Single  Entry  Book-keeping  until  wo  are  closing  the 
Ledger. 

2.  The  amount  of  cash  in  hand  is  found  by  counting  it. 


MERCHANDISE 


1866. 


Deo.  :  31  For  am't  on  hand  "^  Inv.  4   3363  25 


'  For  Bal.  bro't  down       33G3  25 

1.  How  is  tJie  amount  of  goods  on  hand  ascertained  ? 

2.  What  is  to  be  done  with  the  Cash  Merchandise  and  Bill 

Accounts,  if  the  books  are  to  be  hereafter  kept  by  Single    i 
Entry?  r     j       a       ^ 

3.  What  if  they  are  to  be  kept  by  Double  Entry? 


ACCOUNT. 

1866. 

Dec.  131 

Balance                    fol.    3 

3363 

25 

1 

i 



1.  The  Merchandise  on  hand  is  found  by  inventory. 

2.  Tlie  Cash  Merchandise  and  the  two  following  acconntf 

remain  closed. 

3.  The  balances  of  these  four  accounts  are  all  brought  dowa 


BILLS 

RECEIVABLE. 

1866. 
Dec.    31    For  notes  on  hand 

4 

81    76 

■-■ 

1866. 

Dec. 

31 

Balance                    fol. 

M 

i 
-1  ;'  75 

BILLS 

PAYABLE. 

1880i 

Dec. 

31    Balance                     fo' 

1 — 

1                  ! 

(35 

1866.           ! 

Dec.  31 

\         \ 

For  our  notes  unpaid 

4 

66 

1      Who 

f    f*r\r\a^l^n^Aa     4^\xr^    Al^4-:-^^.i.t^         i^.x    _. 

.,. 

Single  Entry  Ledger? 
2.  Why,  then,  are  these  accounts  opened  here  ? 


1.  The  five  last  accounts  belong  to  Double  Entry  books.    N.. 

accounts  are  kept  in  Single  Entry  books  but  personal 
accounts. 

2.  These  accounts  are  opened  here  only  for  the  purpose  of 

recording  the  partners'  settlement,  and  to  illustrate  th« 
manner  of  re-opening  the  Ledger  by  Double  Entry.— 
See  notes  1  and  2,  p.  19. 


BALANCE 


ACCOUNT. 


1866. 

Dec. 


31 


Am't  due  by  Martin  f. 
//  //  Jas.  Carter 
n        II     R.  Evans 

Cash  in  hand 

Mdse.  in  hand 

Bills  Receivable     7365. 


1 
2 

3 


9 

4 

271 

3634 

3363 

81 

7365 


50 
50 
25 
75 
25 
75 


1866. 


Dec.  31  Bal.  due  W.  Hay 


1.  What  does  the  Dr.  side  of  this  account  represent? 

2.  How  is  the  present  net  capital  found? 

8.  Where  is  the  list  of  debts  owing  by  the  concern,  and  what 

do  they  amount  to? 
4.  What  is  the  partners'  present  joint  capital  ? 
6.  What  portion  of  this  $4000  belongs  to  each  partner? 

6.  How  do  we  ascertain  the  amounts  they  have  paid  in  and 

drawn  out  ? 

7.  How  do  we  ascertain  if  our  operations  are  all  correct  ? 
»   What  IS  the  reason  of  this? 


// 
// 
// 
// 


T.P.Cope&Sons 
on  our  notes  sass. 
P.  Duff,netcap'l 
W.  Gordon,  do. 


2 

// 
3 
1 
// 


800 

2500 

66 

2500 

1500 

7365 


1.  A  complete  inventory  of  all  the  effects  of  the  firm. 
-'.  By  deducting  what  they  owe  from  the  amount  of  their 
property— see  the  small  figures  in  the  margin  al»ove. 
The  three  first  entries  on  the  credit  side,  amounting  to 
$3365. 

4.  This  leaves  the  present  net  joint  capital  ^00. 

5.  That  dei)ends  upon  the  amounts  which  they  have  paid  io 

and  withdrawn. 

6.  This  can  only  be  known  by  their  accounts. 

7.  If  the  operations  are  all  correct,  the  balances  due  them  or 
m*''*'*'^  accounts  must,  as  above,  exactly  close  this  account. 

8.  The  balances  due  to  other  persons  and  the  balances  due 

the  proprietor  or  proprietors  of  a  concern  must  exactly 
use  up  all  its  effects,  neither  more  nor  less. 


B 


17 


SINGLE  ENTRY  BOOK-KEEPING. 


SINGLE  ENTRY  BOOK-KEEPING. 


\i 


CONCLUDING  REMARKS  UPON  THE  LEDGER. 

It  may  be  necessary  to  state  that  the  object  for  closing  the  Ledger  *may  be:  Ist,  To 
ascertain  and  record  a  division  of  the  gain  or  loss  between  the  partners;  or,  2d,  To  prepare 
the  books  for  a  partner  to  come  in ;  or,  3d,  To  prepare  for  transferring  the  contents  of  the 
old  Ledger  to  a  new  one ;  or,  4th,  For  transforming  the  Single  Entry  Ledger  into  a  Double 
Entry  one,  or  transferring  the  Accounts  to  a  new  Double  Entry  Ledger. 

In  closing  the  Ledger,  every  Account  is  made  even  by  a  Balance  Entry  at  the  lesser  side, 
of  the  amount  requisite  to  make  it  equal  to  the  other  side.  These  balance  entries  all  repre- 
sent 'either  effects  or  liabilities  of  the  concern,  and  are  all  transferred  as  fast  as  the  Ac- 
counts are  closed,  to  the  Balance  Account  "for  the  purpose  of  exhibiting  the  amount  total 
of  each,  and  thereby  to  ascertain  what  the  concern  is  at  present  worth.  There  is  no  way 
of  knowing  this  but  by  making  up  one  list  of  every  thing  we  possess  and  another  list  of 
every  thing  we  owe.  Now,  this  leads  us  to  the  most  simple  and  rational  explanation  of  the 
Balance  Account ;  for  the  Dr.  side  is  simply  this  list  of  our  effects  and  the  credit  side  the 
list  of  our  Liabilities.  The  Difference,  if  the  Dr.  side  be  the  largest,  *is  what  we  are  now 
worth.     If  the  Cr.  side  be  the  largest,  Hhe  difference  is  what  we  are  insolvent. 

The  closing  entries  of  the  Ledger  need  not  appear  on  the  Day  Book.  They  may  all  be 
made  upon  the  face  of  the  Ledger.  They  ought,  however,  both  letters  and  figures,  to  be  in 
red  ink.  All  transfers  from  one  folio  to  another  on  the  Ledger  should  also  be  noted /oZ.  or 
/olio*  to  distinguish  the  pages  from  those  which  refer  to  the  Day  Book.  But  the  Ac- 
countant must  avoid  the  practice  of  making  any  other  entries  upon  the  Ledger  without  an 
original  entry  with  full  particulars  upon  the  Day  Book. 

If  an  entry  affecting  a  personal  Account  cannot  be  found  upon  the  Day  Book,  its  correct- 
ness may  be  questioned,  and  in  case  of  litigation  it  is  liable  to  be  rejected  altogether. — See 
Note  2,  page  14,  and  Note  2,  page  25. 

The  statement  at  the  foot  of  Day  Book,  p.  4,  will  always  give  the  correct  gain  or  lose, 
provided  it  includes  all  the  effects  and  liabilities.     The  rule  is — 

All  debits  are  effects;  all  credits  are  liabilities. 

If  the  amount  of  effects  exceeds  that  of  the  liabilities,  the  surplus  is  gain,  passing  to 
credit  of  the  Stock  account,  or  to  the  credit  of  the  partners.  If  the  liabilities  exceed  the 
effects,  the  deficiency  is  loss,  and  passes  to  the  debit  of  Stock,  or  the  partners'  accounts  if 
the  business  belongs  to  a  firm. 


1.  What  are  the  objects  for  closing  the  Ledger? 

2.  "What  do  all  Balance  Entries  represent? 

3.  What  are  they  all  transferred  to  the  Balance  Account  for? 

4.  If  the  Dr.  side  of  the  Balance  Account  be  the  largest,  what  does  the  difference  between  its  Bides  represent  I 
6.  What  if  the  Cr.  side  be  the  largest? 

6.  Why  must  the  transfers  on  the  face  of  the  Ledger  be  noted  folio? 


ID 


It  has  already  been  explained— see  Cash  Account,  Note  1,  and  Merchandise  Account 
ISote  2— that  these  and  the  other  property  accounts  were  not  opened  until  we  were  closing 
the  Ledger.  They  were  then  opened  for  the  purpose  of  recording  the  different  species  of 
property  the  firm  possessed  when  the  dividend  was  made.  If  the  books  are  re-opened  by 
bmgle  hntrj  these  accounts  remain  closed ;  but  if  they  re-open  by  Double  Entry  their 
balances  as  well  as  all  the  others  are  brought  down.  But  whether  the  books  are  afterwards 
to  be  kept  by  Single  or  Double  Entry,  no  dividend  ought  to  be  made  between  the  partners 
without  a  record  of  all  their  effects  and  liabilities,  and  that  record  and  Balance  Account 
ought  always  to  be  in  the  Ledger,  or  in  a  book  for  the  purpose,  not  on  loose  sheets  of  paper 
as  IS  the  practice  with  many  business  people.  As  the  Ledger  now  stands,  if  you  desire  td 
re-open  it  by  Single  Entry,  you  have  only  to  bring^  all  the  balances  of  the  personal  accounts 
down  as  we  have  done  with  Hay's  account^Ledger  folio  2— leaving  only  the  Cash  Mer- 
chandise,  and  two  Bill  Accounts  on  folio  3  closed.  If  you  desire  to  open  the  same  accounts 
m  a  new  Single  Entry  Ledger,  leave  them  all  closed  upon  the  old  Ledger,  and  transfer 
every  account  under  date  of  the  old  Balance  Account,  to  the  new  Ledger,  entering  "  Balance 
from  Ledger  A  (or  B)  folio"— giving  the  folio  of  the  old  Ledger. 

If  you  desire  to  re-open  by  Double  Entry  in  the  old  Ledger,  bring  down«  the  balances  of 
the  Cash,  Merchandise,  and  the  two  Bill  Accounts,  with  all  the  balances  of  the  personal 
accounts  and  your  Ledger  is  open  by  Double  Entry.  A  glance  at  the  Balance  Account 
proves  this,  tor  there  we  see  every  debit  and  credit  that  we  have  brought  down  into  new 
account,  and  they  being  equal  in  amount  S7,365,  our  basis  for  a  Double  Entry  Ledger  is  as 
complete  as  if  it  had  been  kept  upon  that  principle  from  the  beginning. 

If  you  wish  to  transfer  the  contents  of  the  old  Balance  Account  to  a  new  Double  Entry 
Ledger,  it  can  be  done  direct  from  the  Balance  Account  in  the  old  Ledger  to  the  respective 
accounts  m  the  new  Ledger,  giving  reference  to  the  folio  of  each  account  in  the  old  Led-er 
as  above  directed  in  transferring  to  the  Single  Entry  Ledger.  Those  who  prefer  passfng 
the  transaction  through  the  Journal  will  make  the  following  entry:—  r  r        & 


Sundries,  Dr.     To  Sundries,  $7365. 


Robert  Martin,  bal.  per  Ledger  A,  folio  1, 


James  Carter,  do.  '  do. 

Robert  Evans,  do.  do. 

Cash  in  hand,  do.  do. 

Mdse.     do.  do.  do. 

Bills  Receivable  in  hand,         do. 
To  William  Hay,  for  bal.  due  him 
//    T.  P.  Cope  &  Sons,     do. 
'/    Bills  Payable,  bal.  due  on  our  Notes,  3, 
//    P.  Duff,  for  his  Net  Capital,  1, 

"    W.  Gordon,  do.  1 


2, 
2, 
3, 
3, 
3, 
2, 
2, 


$9.50 

4.50 

271.25 

3.634.75 

3,363.25 

81.75 


$800. 

2,500. 

65. 

2,500. 

1,500. 


When  this  entry  is  posted  into  the  new  Ledger,  the  transfer  to  it  is  completed  The 
learner  will  not  expect  to  understand  what  we  have  said  here  in  reference  to  re-openin^  his 
Ledger  by  Double  Entry  until  he  has  acquired  a  knowledge  of  that  method  in  the  next 
Chapter.  He  will  then  refer  back  to  this  matter,  which  could  only  be  explained  here  in 
connection  with  the  Single  Entry  Ledger. 

He  will  also  refer  to  our  directions  for  correcting  errors  in  the  next  Chapter,  p.  98. 


o"  WK^®.^^^^^^'  i8/eK)pened  by  Single  Entry,  what  balances  are  to  be  brought  down? 
A  What  balances  do  you  bring  down  to  re-open  by  Double  Entry? 

19 


SINGLE  ENTEY  BOOK-KEEPING. 

EXERCISES  IN  MAKING  OUT  ACCOUNTS,  INVOICES,  &c.  IN  CONNECTION 

WITH  THE  PRECEDING  SET. 


(1.)    Form  op  an  Account. — See  J.  Wood's  Account,  Ledger  folio  1. 

Mr.  James  Wood, 

To  Duff  &  Gordon. 


Dr. 


18«6 

Sept. 
Oct. 


1806. 

Sept. 
Oct. 


1  For  bal.  due  P.  Duff  on  old  % 
10     //     Paid  your  order  in  favor  of  John  Toole 

5     //     1  pr.  Boots,  S6.     Hat,  85 
20     n    Paid  your  order  in  favor  of  J.  Pine 


Crs. 


10   For  your  bill  of  carpenter  work 

5     //     our  order  on  you  in  favor  of  Wm.  Hay 

Bal.  due  Duff  &  Gordon 
j      New  York,  1st  Nov.  1866. 


1105. 
50. 


200 

12 

11 

8 


231 

155 


76 


Note. — Accounts  current  are  always  drawn  from  the  Ledger,  referring  by  the 
the  Day  Book  when  particulars  are  wanted.  See  that  the  account  and  the  Ledger 
alike,  and  as  soon  as  Wood  admits  the  correctness  of  the  account,  you  must  close 
count  on  the  Ledger,  as  we  have  done,  and  bring  the  balance  down,  requesting  him 
his  books  also  conform  to  the  settlement.  Many  persons  keep  their  books  in  such  a 
manner  that  they  never  show  their  settlements )  in  consequence  of  which,  they 
petually  pestering  their  neighbors  in  business  for  statements  of  old  settled  accounts, 
tion  to  our  directions  in  this  matter  will  save  trouble  to  both  parties. 

r2.)     Form  of  a  Bill  of  Parcels. — See  Day  Book,  p.  2.     October  10. 

Mr.  James  Carter, 

BoT.  OF  Duff  k  Gordon. 


dates  to 
balance 

his  ac- 
to  make 
slovenly 
are  per- 

Atten- 


1  Fine  Black  Dress  Coat    . 

1  Full  Circle  Cloak,  trimmed  with  velvet 

Received  cash  on  account 

New  York.  10th  Oct.  1866. 


Balance  due 


28 
45^ 

73 

50^ 

23 


(3.)    Form  of  an  Invoice. — See  Day  Book,  p.  3.     November  20. 

Mr.  Robert  Evans, 
(Terms,  net  cash  in  4  months.) 


Bot.  of  Duff  &  Gordon. 


12  pair  strong  Waterproof  Boots    . 
24    n     fine  '/ 

24    ti     Boys'  Shoes 

Packing  Case  and  Cartage    . 

New  York,  Nov.  20, 1866. 


@88. 

96  ' 

@    6. 

144  ! 

@    1.25 

30 

•                 • 

1  j25 

271    25 

1 

Before  forwarding  this  invoice,  compare  it  carefully  in  every  particular  with  your  Day 

Book. 

20 


SINGLE  ENTKY  BOOK-KEEPING. 


MERCANTILE  TERMS  AND  ABBREVIATIONS   USED  IN   THIS   WORK. 


Account  current,  a  running  account,  em- 
bracing all  transactions  from  one  date 
to  another. 

Account  sales,  an  account  of  goods  sold  on 
consignment. 

Amt.,  for  amount. 

Acct.,  for  account. 

@,  for  at. 

Bal.,  for  balance. 

Bbls.,  for  barrels. 

B.  B.,  for  Bill  Book. 
Bottomry  Bond,  a  mortgage  or  lien  upon  a 

vessel 

C.  B.,  for  Cash  Book. 


Co.,  for  Company. 
C.  S.  B.,  for  Commission  Sales  Book. 
Cr.,  for  Credit. 

,  Closing  an  account,  to  make  it  even. 
Closing  lines,  the  lines  which  separate  the 

old  from  the  new  account. 
Counter  Entry,  an  entry  made  to  balance  one 

on  the  opposite  side. 
Counter  Error,  an  error  balanced  by  another 

one  on  the  opposite  side. 
Counter  Order,  to  recall  an  order. 
Dr.,  for  Debtor. 
Do.,  or  ditto,  for  the  same. 
Dft.,  for  draft. 
Ds.,  for  days. 

Defalcation,  deficit,  diminishing  or  cutting  ofi". 
Disct.,  discount,  a  sum  or  rate  per  cent,  de- 
ducted from  the  principal  amount. 
Doz.,  for  dozen. 

Dishonored,  when  a  note  or  bill  remains  un- 
accepted or  unpaid. 
Del  Credere,  an  Italian  mercantile  term  sig- 
nifying guarantee. 
Days  of  grace  the  time  allowed  by  law  and 

custom  to  pay  a  note  after  it  is  due. 
Dividend,  the  profit  to  be  divided. 
Drawer,  the  maker  of  a  draft. 
Drawee,  the  person  upon  whom  it  is  drawn. 
E.  E.,  for  errors  excepted. 
E.  and  0.  E.,  for  errors  and  omissions  ex- 
cepted. 
Exch.,  for  Exchange. 
Endorse,  to  write  your  name  on  the  back. 
Full  extend,  to  extend  figures  into  the  money 

columns. 
Footing  an  account,  to  add  it  up. 
Folios,  the  pages  of  the  Ledger. 
Gal.,  for  Gallon. 
Hhd.,  for  Hogshead. 


I  Honor  a  draft,  to  accept  it. 
I.  B.,  for  Invoice  Book. 
Inventory,  a  list  of  goods  or  debts. 
Insolvent,  not  having  sufficient  eflfects  to  pay 

one's  debts. 
£,  for  pound  sterling. 
Lighterage,  a  charge  for  conveying  goods  to 

a  vessel  in  the  harbor. 
Mos.,  for  Months. 
Mdse.,  for  Merchandise. 
Maturity,  the  day  upon  which  a  note  or  bill 

is  payable. 
Mart,  a  place  for  public  trade. 
N.  A.,  a  new  account. 
N.  P.,  net  proceeds,  the  amount  remaining 

after  all  charges  are  deducted. 
No.,  for  number 
N.  G.,  net  gain,  the  gain  remaining  after  all 

losses  are  deducted. 
N.  C,  net  capital,  the  capital,  clear  of  all 

debts. 
N.  L.,  net  loss,  the  loss  above  all  gains. 
0.  A.,  old  account. 
Per  Ct.,  for  per  cent.,  as  5  Per  Ct. 
Ps.,  for  pieces. 
P.,  for  per  or  by. 
Prox.,  for  proximo,  next  month. 
P.  B.  P.,  for  Bill  of  Parcels. 
Pd.,  for  paid. 
Prem.,  for  premium,  an  advance  upon  the 

face  of  the  Bill. 
Par,  the  face  of  the  Bill. 
Protecting,  accepting  or  taking  up  a  Bill. 
Policy,  the  contract  with  an  Insurance  Office 
Protest,  legal  notice  of  the  non-payment  of  a 
note   or  bill;    which  notice   holds  the 
endorsei-s  liable  for  its  payment. 
Rec'd,  for  Received. 
Renewal  of  a  Note,  extending  its  time  upon 

a  new  Note. 
Re-consign,  to  send  our  employer's  consign- 
ment to  another  market,  for  sale. 
Solvent,  able  to  pay  debts. 
Short  extend,  to  extend  figures  to  the  left  of 

the  money  columns. 
S.  B.,  Sale  Book. 
Stg.,  Sterling. 

Signature,  a  person's  name  in  his  own  hand- 
writing. 
Sgt.,  sight. 

Ulto.,  ultimo,  last  month. 
Yds.,  yards. 


21 


DOUBLE  ENTRY  BOOK-KEEPING. 


SET  I.— DOUBLE  ENTRY  BOOK-KEEPING. 


INTRODUCTORY    SET. 


PRELIMINARY    REMARKS. 

Having  in  the  last  Chapter  explained  Single  Entry  Books,  we  have  now  to  treat  of  the 
science  upon  the  Double  Entry  principle.  We  purpose  to  introduce  it  as  if  the  learner 
had  no  previous  knowledge  of  the  subject.  For  such  persons  we  have  prepared  the  follow- 
ing Introductory  Set. 

The  purpose  of  this  set  is  to  explain  the  initial  difficulties  of  the  science.  We  have 
found  by  experience  that  it  is  difficult  to  make  a  pupil,  who  has  no  previous  knowledge  of 
the  subject,  understand  the  language  of  the  Journal  until  he  is  made  acquainted  with  the 
nature  and  disposition  of  the  accounts  in  the  Ledger.  How,  for  instance,  can  we  explain 
to  a  beginner  the  meaning  of  such  expressions  as  "  Cash  to  Sundries,"  or  "  Sundries  to 
Cash,"  but  by  taking  him  to  the  Ledger  and  there  explaining  to  him  the  Cash  Account 
and  the  manner  and  object  for  keeping  it  ?  Until  he  has  the  Ledger  explained  to  him  in 
some  way,  the  language  of  the  Journal  must  remain  unintelligible  to  him :  and  to  this  may 
be  ascribed  the  difficulty  and  ill  success  in  teaching  Book- keeping  from  some  of  the  most 
popular  treatises  in  use ;  in  which,  after  bewildering  the  pupil  with  Rules  and  Lectures 
upon  Journalizing,  they  conclude  with  what  ought  to  be  first  explained, — the  Ledger. 

We  here  introduce  our  pupils  at  once  to  that  book,  by  first  defining  its  nature  and  use, 
and  then  by  posting  a  few  entries  into  it,  sufficient  to  afford  an  explanation  of  the  balance 
sheet.  He  then  brings  it  to  ar  close  and  determines  the  gain  or  loss  upon  these  trans- 
actions,— an  operation  that  can  hardly  fail  to  awaken  his  interest  and  create  a  taste  for  the 
science. 

He  next  brings  down  the  balances,  and,  after  recording  a  few  more  entries,  closes  his 
Ledger  as  before,  ascertains  the  increase  or  decrease  of  capital,  and  prepares  for  transfer- 
ring his  balances  to  a  new  set  of  books.  This  already  affords  him  a  commanding  view  of 
the  whole  subject;  particularly  of  that  part  of  the  process  which  is  so  seldom  understood 
by  young  accountants, — viz.  transferring  the  contents  of  old  books  to  new  ones. 

The  light  thrown  upon  the  subsequent  parts  of  the  process,  by  this  early  acquaintance 
with  the  nature  and  purposes  of  the  different  accounts  in  the  Ledger,  will  render  the  pupil's 
progress  less  difficult  and  perplexing  and  more  effective. 

The  teacher  will  not  omit  to  require  answers  to  all  the  questions  given  at  the  foot  of  each 
page,  for  the  pupil's  examination  as  he  proceeds. 


22 


DEFINITION  OF  THE  LEDGER. 

All  the  other  books  used  in  business  may  be  considered  as  tributaries  to  this  Book. 
Every  transaction  affecting  our  affairs  must  come  to  some  accounts  in  the  Ledger  for  final 
adjustment.  It  therefore  follows  that  a  distinct  knowledge  of  the  nature  of  the  accounts  in 
it  and  the  manner  of  conducting  them  is  indispensable  to  enable  a  person  to  record  an  entry 
intelligibly  upon  the  other  Books. 

In  the  infancy  of  commerce,^  the  Ledger  was  the  only  book  used ;  and  where  the  trans- 
actions are  few,  it  still  may  be  made  to  answer  the  same  purpose,  by  making  the  entries  on 
it  at  once,  without  the  intervention  of  any  other  book.  Thus,  when  a  sum  is  to  be  entered, 
by  the  index  you  find  the  account  headed,  in  a  large  distinct  hand,  with  the  name  of  the 
person  with  whom  the  transaction  has  occurred,  and  at  the  proper  side  we  enter  the  date 
particulars,  and  amount. 

This  book''  is  generally  kept  in  folios  of  two  pages  to  a  folio.  Of  late,  however,  each 
page  is  generally  made  to  serve  for  a  folio  by  a  dividing  line  down  the  middle.  On  the  left 
side  of  each  folio  are  the  date  columns,  and  on  the  right  those  for  the  money.  *One  folio 
is  allowed  to  each  person's  account,  th^  left  side  being  assigned  to  the  debits,*  which  means 
your  account  against  the  person,  and  the  right  side  receives  the  credits  or  the  person's 
account  against  you.  Thus,  your  account  against  him  and  his  account  against  you  are 
brought  together  under  one  head,  yet  arranged  on  opposite  sides,  in  such  a  manner  that, 
if  once  correctly  placed,  no  doubt  can  afterwards  arise  as  to  what  sums  belong  to  his  ac- 
count or  to  your  account.  When  either  party  pays  the  other  in  full,*^  after  the  ^payment  is 
entered,  the  account  must  be  closed.  •When  the  two  sides  of  an  account  are  found  to  be 
equal,  place  the  sum  at  the  foot  of  each  and  draw  ink  lines  below  them  in  such  a  way  as  to 
keep  the  figures  distinctly  separated  from  those  of  the  transactions  that  may  follow  after  the 
settlement,  and  which  may  be  kept  «nder  the  same  head — see  our  Cash  and  Merchandise 
accounts  in  the  Introductory  Ledger,  pages  33  and  34. 

In  addition  to  persons'  accounts,  in  Double  Entry  Books,'  we  also  keep  accounts  of  every 
kind  of  property  we  own  and  deal  in.  This  is  done  under  different  heads  precisely  as  we 
have  just  described  in  personal  accounts;®  making  each  property  account  Dr.  for  what  we 
pay  for  it,  that  is  what  it  gets  in  debt  to  us ;  and  Credit  for  what  it  brings  us  in ;  that  is 
what  it  pays  us  or  gets  out  of  our  debt.  In  fact  we  may  say  that  such  accounts  are  per- 
sonified and  are  dealt  with  in  all  respects  like  persons.  Thus,  if  you  own  a  house,  ship,  or 
steamer,  let  each  have  an  account  in  your  Ledger.  »This  account  is  debited  for  the  cost  or 
value  of  the  property,^®  and  credited  for  the  freight  or  rent  it  has  brought  you  in,  and  also 
for  the  proceeds  of  the  sales  if  you  have  sold.  Then  an  inspection  of  the  account  will 
show  what  we  have  made  or  lost  by  that  piece  of  property.  Thus,  if  the  cost"  (the  Dr.  side) 
be  more  than  what  it  has  brought  us  in  (the  Cr.  side),  then  we  have  lost  by  it.  But  if  the 
Credit  side  be  the  largest,  then  we  have  gained  by  it.    In  the  same  manner  the  gain  or  loss 

is  determined  upon  the  purchases  and  sales  of  Merchandise  or  any  other  property. See 

Merchandise  Account,  1st  Set. 


1.  What  was  the  first  book  used  in  CominerceT  2  How  is  the  Ledger  generally  kept?  3.  How  many  folios  for  each  account 
and  which  side  is  used  for  the  debit  and  w  nch  for  the  credit  side?  4.  What  do  yon  mean  by  the  debits  and  credits  of  m.  ac- 
count? 5.  W  hen  either  party  pays  the  other  oflf,  what  is  to  be  done  with  the  account?  6.  What  do  you  mean  bv  closiue  an 
f^'^^.",^* !  1'  ^J^^i'^V^^^  accounts  besides  personal  accounts  are  kept  in  Double  Entry  Books?  8.  How  are  property  account* 
kept  ?  9.  To  which  side  of  the  property  account  do  you  place  its  cost  or  value  ?  10.  What  do  you  place  to  the  credit  side  of  a 
property  account?    11.  How  do  you  determine  what  you  have  made  or  lost  by  a  property  account? 

23 


SET  I.— DOUBLE  ENTRY  LEDGER  AND  DAY  BOOK. 

The  third  class  of  accounts^  kept  in  Double  Entry  Books  may  be  called  Profit  and  Loss 
Accounts,  as  they  receive  no  entries  but  gains  and  losses.  ^They  are  kept  for  the  purpose 
of  recording  all  expenses  and  losses,  and  all  gains.  They  may  be  kept  all  under  one  head — 
Profit  and  Loss;  which  is  kept  like  all  other  accounts  with  a  Dr.  and  Cr.  side.  "The 
Dr.  side  receives  all  entries  of  Expense  and  Loss,  and  the  credit  side  all  entries  of  gain. 
*But  where  the  gains  and  losses  are  thus  thrown  together  in  one  account,  we  deprive  our- 
selves of  the  means  of  determining  the  gain  or  loss  arising  out  of  particular  sources.  But 
if  we  subdivide  this  account  and  open  branches  for  Interest,  Commissions,  Expenses,  &c., 
and  debit  each  of  these  branches  for  all  we  lose  upon  it,  and  credit  it  for  all  we  gain  by  it, 
it  is  obvious  that  each  of  these  accounts  will  at  any  time  present  an  important  and  interest- 
ing piece  of  information.  And  the  longer  we  keep  them,  the  more  interesting  and  in- 
structive they  become,  as  they  can  be  made  to  present  a  tabular  view  of  their  respective 
results  for  comparison  at  diflferent  periods  of  our  business. 

Presuming  that  our  attentive  learner  has  now  obtained  some  idea  of  the  Ledger,  we  will 
next  endeavor  to  explain  the 

DAY  BOOK. 

This  book  is  by  some  called  The  Blotter,  and  it  is  not  an  inappropriate  name  for  some 
people's  Day  Books.  But  for  obvious  reasons,  scratching  out,  scoring  or  blotting  entries 
upon  this  book  ought  to  be  avoided.  If  an  entry  be  made  wrong,  it  ought  to  be  corrected, 
as  we  shall  direct  when  speaking  of  the  correction  of  errors,  page  98,  Note  11. 

This  book  is  ruled  in  single  pages,  never  in  folios  like  the  Ledger.  There  is  a  marginal 
column  on  the  left  and  money  columns  on  the  right. — See  our  Day  Book  in  the  following 
Set,  page  28.  % 

This  book  becomes  necessary  as  soon  as  the  business  transactions  become  so  numerous  as 
to  render  it  inconvenient  to  turn  to  the  proper  account  in  the  Ledger  and  to  record  them 
there  separately.  *0n  the  Day  Book  we  enter  them  down  one  after  another  as  they  occur, 
like  so  many  different  memorandums.  We  reserve  no  spare  space  for  each  man's  account 
here  as  we  do  in  the  Ledger.  We  have,  however,  to  take  care  that  every  entry  embraca«« 
the  following  particulars.  « 1st,  the  date ;  2d,  the  person  or  account ;  3d,  what  you  have 
bought  or  sold,  paid  or  received ;  4th,  the  terms  of  payment ;  5th,  the  articles,  quantities, 
prices,  and  amounts.  By  inspecting  any  of  our  Day  Books  it  will  be  seen  that  entries  for 
different  persons'  accounts  are  all  intermixed  upon  the  same  page ;  but  are  separated  by  ink 
lines  in  such  a  manner  that  there  is  no  difficulty  in  distinguishing  what  belongs  to  each 
person^s  entry. 

At  our  first  leisure  time  we  post  the  contents  of  the  Day  Book  into  the  Ledger.  'Post- 
ing signifies  the  process  of  transferring  each  Day  Book  entry  to  the  proper  side  of  its  proper 
account  in  the  Ledger,  in  the  same  order  of  date  as  they  occurred  upon  the  Day  Book.  In 
order  to  show  distinctly  how  far  the  posting  has  proceeded,  when  the  post  or  transfer  is 
made  to  the  Ledger,*  the  entry  is  marked  off  or  the  Ledger  page  inserted  in  the  margin  of 
the  Day  Book,  as  we  have  done  upon  the  first  page  of  the  following  Day  Book. 


Tm  TEAcnKRS  Examiwatioit.— 1.  What  is  the  third  class  of  accounts  called,  and  what  kind  of  entries  do  they  record? 
2.  What  18  the  purpose  of  keeping  them?  3.  What  do  we  place  to  the  debit  and  credit  side  of  the  Profit  and  Loss  accounts' 
4.  Yt  hat  objection  is  there  to  keeping  all  accounts  of  loss  and  gain  under  the  Profit  and  Loss  accounts  ?  5.  How  are  ontries 
made  in  the  Day  Book?  6.  What  particulars  should  every  Day  Book  Entry  embrace?  7.  What  is  meant  by  postine?  8  How 
do  we  show  upon  the  Day  Book  how  far  the  posting  has  proceeded? 

24 


SET  I.— DOUBLE  ENTEY. 

When  a  Day  Book  is  kept  it  is  called  the  Book  of  original  Entry,  ^and  will  always  be 
referred  to  in  any  case  of  doubt  or  dispute  about  the  correctness  of  any  entry  upon  the 
Ledger.  It  then  becomes  a  matter  of  importance  to  have  every  entry  made  upon  the  Day 
Book^  in  such  a  way  as  to  explain  itself,  and  also  that  every  entry  affecting  other  persons* 
accounts  should  originate'  upon  this  book.  The  practice  of  making  some  entries  originate 
upon  the  Ledger  where  a  Day  Book  is  kept,  often  leads  to  perplexing  consequences.  The 
original  entry  ought  also  to  be  made  *  by  the  clerk  with  whom  the  transaction  occurred. 
The  next  Book  requiring  explanation  is  the 


JOURNAL. 

This  Books  becomes  necessary  as  soon  as  the  nature  and  extent  of  the  business  introduces 
many  long  and  intricate  entries  upon  the  Day  Book.  When  one  Day  Book  entry  affects  a 
number  of  accounts  in  the  Ledger,  posting  such  entries  direct  from  the  Day  Book  becomes 
difficult  and  liable  to  error.  'The  purpose  of  the  Journal  is  to  arrange  all  the  transactions 
from  the  Day  Book  in  such  a  manner  that  each  Ledger  title  shall  be  affixed  to  its  respective 
Debit  or  Credit,  and  thus  render  the  posting  into  the  Ledger  less  liable  to  omissions  and 
errors.  The  transactions  of  a  very  extensive  business  may  be  stated  upon  the  Day  Book  io 
the  Journal  form  in  such  a  manner  as  to  be  posted  without  difficulty  and  without  the  iuter- 
vention  of  a  Journal.  This,  however,  can  only  be  done  by  those  who  have  learned  to  keep 
the  Journal;  and  a  correct  knowledge  of  the  language  and  principles  of  this  Book  is  an 
important  and  somewhat  difficult  part  of  the  science  of  accounts  to  acquire.  We  embody 
our  instruction  for  making  the  entries  of  this  book  in  rules  upon  the  next  page,  which  are 
immediately  afterwards  put  in  practice  in  the  introductory  Day  Book  and  Journal.  We 
hope  our  attentive  learner  will  now  have  but  little  difficulty  in  answering  his  teacher  the 
following 


GENERAL  QUESTIONS   ON  THE   PRECEDINa  LESSONS. 

Quest.  1.  When  a  person  buys  of  you  on  credit,  to  which  side  of  his  account  in  the 

Ledger  do  you  place  the  amount? 

2.  If  you  buy  on  credit,  to  which  side  of  the  perso^'s  account  do  you  plaee  the 

amount? 

3.  If  you  afterwards  pay  him  this  amount? 

4.  How  does  the  account  then  stand  and  what  is  to  be  done  with  it?— See  Note  5 

p.  23.  ' 

5.  When  you  receive  money,  to  which  side  of  the  Cash  Account  do  you  place  it? 

6.  When  you  pay  money  away  ? . 

7.  When  you  buy  Merchandise,  to  which  side  of  the  account  do  you  place  the 

amount? 

8.  When  you  sell  Merchandise  ? 

9.  If  you  buy  Houses,  Ships,  or  Steamboats? 

10.  If  they  bring  you  in  freight  or  rent,  or  if  you  seU  the  whole  or  part  of  any  of 

them  ?  r  J 

11.  If  you  lose  money,  pay  rent,  clerks'  wages,  or  other  expenses,  to  which  side  of 

the  Profit  and  Loss  Account  do  you  place  the  amount? 
-.12.  If  you  receive  money  for  storage,  or  by  renting  part  of  your  premises,  to  which 
side  of  the  Profit  and  Loss  Account  do  you  place  the  amount  ? 


•2   Hmr'';hm,M^a«  ^ ^"^K^^?''-"^'  ^j***  ^"^^^  *^  ^^^^y^  referred  to  in  case  of  dispute  about  the  correctness  of  the  Ledc-er* 
fimra.Sr  J  V^u^  ^^  *^ K*y'  "^^^^  "P°"  "*«  »*>'  Book ?    3.  Where  should  all  entries  affecting  Spel^^'aWu^^ 


25 


SET  I.— DOUBLE  ENTRY. 


RULES  FOR  JOURNALIZING. 


The  following  rules  must  be  committed  to  memory.  For  the  convenience  of  the  teacher 
we  give  them  in  the  interrogative  form.  The  learner  will  find  it  useful,  in  exercising  him- 
self, to  cover  the  answers. 


Quest.  1.  What  is  the  general  rule  for 
regulating  the  debits  and 
credits  in  Double  Entry 
Book-keeping? 

2.  What  is  the  rule  for  opening 
Books? 


3.  When  is  a  personal  account 

debited  ? 

4.  When  is  a  personal  account 

credited  ? 

6.  What  is  the  general  rule  for 
receiving  and  delivering 
property  ? 

6.  Repeat  a  more  particular 
rule  for  debiting  property 
accounts. 


7.  When  are  property  accounts 
always  credited  ? 


8.  When  is  the  Profit  and  Loss 

Account  to  be  debited  and 
credited  ? 

9.  What  is  a  Bill  Receivable? 
10.  What  is  a  Bill  Payable  ? 


Ans.  1.  The  Debits  and  Credits  arising  out  of 
every  transaction  must,  in  amount,  be 
equal. 


2.  The  Stock  Account  represents  myself, 

and  must  therefore  be  debited  for 
what  I  now  owe  and  credited  for  what 
I  now  possess.* 

3.  When  he  gets  into  my  debt,  or  I  get  out 

of  his  debt,  he  is  Dr.  for  the  amount. 

4.  When  I  get  into  his  debt,  or  he  gets  out 

of  my  debt,  he  is  Cr.  for  the  amount. 

5.  The  thing  received  is  Dr.  to  the  thing 

delivered.f 

6.  When  property  becomes  mine,  it  is  Dr. 

for  its  cost  or  value ;  and  when  it  costs 
me  any  thing  afterwards,  it  is  Dr.  for 
that  cost. 

7.  When  property  brings  me  in  any  thing. 

it  is  credited  for  the  amount,  and 
when  it  ceases  to  be  mine  it  is  cred- 
ited for  its  value  or  what  I  receive 
for  it. 

8.  Always  debit  loss  and  credit  gain. 


9.  Any  obligation  on  paper  which  1  hold 
against  others. 

10.  The  same  description  of  obligations  held 
by  others  against  me. 


•  The  term  Stock  is  nnWersally  used  by  Accountants  for  this  purpose;  but  it  is  rather  an  ill-chosen  title,  as  young  Book- 
keepers are  apt  to  confound  it  with  the  Merchandise  Account.  The  term  Capital  or  some  other  title  that  would  better 
express  the  nature  of  the  account  would  be  more  appropriate.  The  author  has  not,  however,  thought  proper  to  change 
the  title  of  the  account,  it  being  his  object  to  introduce  all  his  improvements  by  conflicting  as  little  as  possible  with  esta- 
blished usages. 

+  Or,  the  receiving  account  Dr.  to  the  imparting  account. 

2Ki 


I 

.  V 


SET  I.— DOUBLE  ENTKY.    ' 


THE  DAY  BOOK  AND  JOURNAL. 


INTRODUCTORY  REMARKS. 

1.  These  two  Books  are  here  bound  together.     This  is  done,  both  here  and  with  the 

principal  set,  for  the  mutual  convenience  of  the  learner  and  the  teacher;  but  thev 
bound  Tearltd^*  ^°^''  ^''^  ""^^^"^  ^^^^  "''  '"^  business.     There  they  are  always 

DIRECTIONS  TO  TEACHERS  AND  LEARNERS.  • 

2.  After  committing  to  memory  the  preceding  Rules  for  Journalizing  you  will  transcribe 

into  your  Day  Book  the  first  page  of  the  one  following.  Then  study  the  Journal 
entries  applying  the  preceding  rules  for  that  purpose,  and  refer  from  each  entry  in  the 
Journal  to  its  final  disposition  m  the  Ledger.  Endeavor  to  understand  the  nature  of 
aU  the  Accounts  there  before  you  go  farther,  for  it  is  that  book  that  regulates  the 
wT!i;  ^''^'ffo^^  *e  fet  thing  to  be  known  is  what  accounts  in  the  Ledger  ar^ 
entitled  to  debits  and  credits  out  of  the  transaction.  Afterwards  you  can  frame  your 
Journal  entry  without  difSculty.  •'  ' 

r  The  teacher  will  then  take  the  printed  Journal  and  hear  the  class,  each  pupil  in  turn 
give  the  Journal  entries  verbally  from  their  own  manuscript  Day  Books    reQuto.^ 
their  answers  at  the  same  time  to  the  interrogatories  at  the  bottom  of  the  page  ° 

^'  ^^Z  fi^Jh?^  ^°  f  ^''  Batisfactorily,  they  are  prepared  to  write  the  Journal.  This 
from  thf  nrt,lrT  ""  f""  °^°  ,"'^°"«<"-  P'  ^<^J  Book,  without  any  farther  assistance 
!.,fL  fP^  '^  f  °*''  "P^^/'ates  or  loose  sheets  of  paper  ruled  to  the  Journal 
pattern,  taking  care  to  extend  the  debit  and  credit  amounts  in  their  proper  columns 
and  upon  the  same  hne  with  their  respectire  accounts.  The  teacher  ^should  require 
each  pupil  to  repea  this  operation  upon  the  slate  or  waste  paper  until  he  can  wrS  th" 
Journal  correctly  without  farther  assistance  from  his  teacher.^  His  printed^oXou-ht 
Iti  '"•das'de  during  this  operation.  After  this  they  will  have  no  difficulty  in  Jour 
h»i  'i^.  ^*"■^ly  ^""^  dir^t  into  their  Journal,  in  all  respects  as  they  will  ^terwarl 
have  It  to  do  m  business.     When  this  is  done  with  the  Lt  page  of  the  Day  B^k 

duTto^"L:C-p  32  ''"'  '™"''°"  '"  "'"'  "'"  '^  '"""'  ^'''^^^  '^'  I""- 
^'  ^$^^2?'"''l*''^^'^*  I^^P  °*'  ^^^  '^"'"™"'^  ""'J  Balancing  the  Ledger  according  to  the 

7.  Let  me  caution  all  teachers  against  allowing  their  students  to  make  their  Journals  or 
ear"  iri  hfetfc  bv'  '^'"''  ^T  "'''  P^'"**'^  '""'''•     ^l^^^  ^'^^^  ^ZuT^t  to 

*■  "^both'wk^  IZ  T  ^n  M°  Tf''  ""''  ^f  '"'•■■^'^"y  '='"°P"«'^  ""-J  check-marked  on 
Tl      k!  ^-     ?°  *?.I'«'lg«'  a  small  point  (■)  is  best,  as  it  does  not  deface  the 

page.     No  person  can  keep  his  work  correct  long  without  checking.     When  you  have 
no  figures  for  your  cent  columns  avoid  the  useless  practice  of  fillinf  them  wkh  c?phe« 
which  are  in  your  way  when  adding  the  column.  wnn  cipners, 

.27 


NEW  YOBK,  November  1,  1866. 


/ 


*  My  effects,  commencing  business  this  day,  consist  of — 

Cash  in  hand $1000. 

Charles  Page  owes  me  on  his  note  .         .         .     $500. 

R.  Manly  owes  me  on  his  bond  and  mortgage     .         1500.        2000.       3000 


& 


/  Bought  for  Cash  of  William  Hay  Merchandise  per  Invoice 


Sold  James  Carter  for  Cash — 

60  pieces  of  two  Blue  Prints     . 
70      n      Fancy  Stripes 


@$3. 
.    //    4. 


$180. 
280. 


10. 


■  Rec'd  Cash  from  R.  Manly  for  his  mortgage  . 
Also  Interest  due  on  the  same  .         .         . 


.     $1500. 
.       90. 


14. 


Bo't  of  A.  Stuart  &  Co.  on  my  note  @  60  days  Merchandise  ^  Invoice 


•  Bought  of  Warden  &  Bell  Merchandise  ^  Invoice     . 
I   Paid  them  Cash  on  account  of  the  same 

The  balance  to  their  account  @  2  months 
==    25.     == 


.  $800. 
200. 


'  Sold  William  Hay— 

5  hhds.  Sugar,  1180,  1220,  1300,  1100,  1200  =  6000  lbs. 
Tare  10  per  cent,  off       .         .         .        600 

Net  5400  lbs.,  @  5  cts.,    $270. 
120  pieces  Furniture  Prints      .         .         .   @  $3.  360.      630. 


Rec'd  Cash  on  account  of  the  same 

The  balance  to  his  account  @  2  months  . 


.     330. 


30. 


•  Paid  Cash  for  Store  Rent,  Advertising,  &c. 


// 


Sold  for  Cash  to  J.  Beck  k  Co.  the  remainder  of  my  Merchandise  in  hand 
240  pieces  Merrimac  Prints         .         .         .         .    @  $3.         $720. 
30      //      Furniture      //....  //     2.  60. 


// 


Paid  Cash  Jennings  &  Co.'s  account  for  Clothing  for  my  private  use 


,,.|;  Stock  must  be  here  credited  for  the  amount  of  my  property  according  to  Rule  2,  and  Cash  and 
Bills  Receivable  are  debited  by  Rule  5,  these  amounts  being  now  received  into  these  books. 
f  \c^^^^  *^*°^  received,  is  here  debited  for  the  whole  amount;  but  there  being  nothing  delivered 
for  the  590,  Profit  and  Loss  is  credited  according  to  Rule  8.    Bills  Receivable  can  only  be  credited  for 
the  fjace  of  the  bill. 

3.  Although  Warden  &  Bell  might  have  been  here  credited  for  the  whole  Invoice,  and  debited  for  the 
payment  upon  it,  yet  the  Journal  entry  we  have  given  is  more  concise  and  equally  correct. 

4.  For  the  reasons  given  in  the  last  note,  Hay  is  here  only  debited  for  the  balance  due  on  this  pur- 
chase. If  he  had  made  this  payment  on  a  former  account,  then  it  must  appear  at  his  credit,  and  the 
whole  of  this  invoice  at  his  debit. 

5.  We  have  received  nothing  in  exchange  for  this  cash,  and  there  being  no  peison  responsible  to  us 
for  it,  we  must  debit  Profit  and  Loss. 

6.  The  figures  in  the  left  marginal  column  of  the  Journal  are  the  pages  of  the  Ledger,  and  are 
written  as  the  posting  proceeds.  They  serve  as  post  marks  to  show  how  far  that  operation  is  com- 
pleted. 

7.  As  the  Day  Book  entries  are  journalized,  each  is  marked  off  in  the  margin,  as  the  above  two 
first  entriee. 

28 


600 


460 


1590 


300 


^ 


60C 


300 
150 


780 
130 


NEW  YORK,  November  1,  1866. 


L.F. 
1 
2 
1 


1 
2 


*  Sundries,  Dr.  to  Stock  account 
Cash  account     . 
Bills  Receivable  account* 


DBS. 

Cms. 

1000 
.      2000 

3000 

5. 


Mdse.,  Dr. 
To  Cash 


600 


600 


2 
1 


2 
1 
3 


1 
2 


Cash,  Dr. . 
To  Mdse. 


460 


460 


10. 


*  Cash,  Dr.  to  Sundries 
To  Bills  Receivable 
n  Profit  &  Loss 


1590 


14. 


Mdse.,  Dr.     . 
To  Bills  Payable 


1500 
90 


300 


300 


1  » Mdse.,  Dr.  to  Sundries 

2  To  Cash    . 
2         n  Warden  &  Bell 


800 


1 
2 
2 


25. 


*  Sundries,  Dr.  to  Mdse. 
Cash     . 
William  Hay     . 


30. 


3     *  Profit  &  Loss,  Dr.  . 
2       To  Cash    . 


2 
1 


8 
2 


330 
300 


150 


200 
600 


630 


150 


Cash,  Dr. 
To  Mdse.  . 


•        • 


Profit  &  Loss,  Dr. 
To  Cash    . 


•         • 


780 


130 


780 


130 


I  ^'  ^or'?hKmount7°*  """*'*''  *°"^  ^^^  ^""^  ^"'  Receivable  account  debited 

J  ^"  ^or'on%5S?  ^"''""^  ^°'"  *^'  ''^'''^  *'"°°°*'  ^^'^  ^'"^  Receivable  credited 

^  ^payment?*"*  ^"^^''  *  ^^"  ^°''  *^^  ""^^^^  ^°^°>'=«'  *°^  <^«^"  t^^^™  ^^^  t^e 

*■  ^on  SounU  °*^  *"°'  ^^  ''*'°^®  ^^''''^'  """^  '"^^  ^^^  P*y"^°*  ^  ^"«  "^^^ 
«  SS^**^®^**  ^™**  *  ^^  ^0^  *^"8  amount? 

'•       wtnr?theyTs?rt°d?^'  ''''  ^^'^^  """^"^^  '^^'"™°  «^  *^«  ''^'^^'^  -"^ 
7.  What  is  done  to  show  how  far  the  Day  Book  is  journalized? 

6vtrfLe&Ttirll?s^?.r.^^^  ""^""^  >«  understood  after 

retafn  it  '        '  Purposes  of  instructibn,  we  deem  it  advisable  to 

29 


NEW  YOBK,  December  1,  1866. 


Received  by  the  packet  Gladiator,  Pratt,  master,  from  London,  an  Invoice 
of  Prints,  shipped  me  by  R.  Morris,  by  my  order  and  for  my  account 
amounting,  per  invoice,  to  £450  sterling,  due  31st  inst.      .       2000. 

Paid  freight  and  duty  in  Cash 500 


10. 


Received  Cash  from  Charles  Page  for  his  note  in  my  favor 

==    u.  , 


*  Sold  James  Day — 

300  pieces  London  Chintz  Muslin,  @  $4 
30      n      Cambric  Handkerchiefs,  @  $10 

Received  Cash  on  account  of  the  same     . 
u        his  note  @  3  months  for  the  balance 


.  81200. 
300. 


81000. 
500.     81500. 


•  Received  from  the  Executors  of  my  Father's  Estate,  House  and 

Lot  44  Broadway,  valued  at 815000. 

C^^^ 10000. 


21. 


*  Discounted  for  C.  Banks  his  note  @  1  month  for      81000. 

»  tf    C.  Murray    //  //    9  months  for       1500.        82500. 


Deduct  33  days'  Interest  on  Banks's  note  5.50 

»       9^\  months'  Interest  on  Murray's  note       68.25 


73.76 


Net  proceeds  paid  them  in  Cash 


Bought  of  Charles  Page  Mdse.  per  Invoice         .         .   82100. 

Paid  him  Cash  on  account 

•  Gave  him  my  order  on  William  Hay,  payable  in  Mdse. 
for  the  balance    . 


82000. 
100. 


25. 


Paid  Cash  my  bill  for  boarding  at  the  Astor  House  to  date 


31. 


•  Paid  William  Hay  Cash  on  loan  for  30  days       .         .         .  82200. 

Sold  him,  on  account,  3  pieces  best  black  Broadcloth,  viz., 

No.  1144.  24?,  1004.  22^  and  909.  23.  =  70  yards,  @  810       700. 


»  Gave  Warden  &  Bell  my  order  on  William  Hay,  payable  in  Cash,  for 


n 


Paid  Rents,  Clerks'  Wages,  &c.,  in  Cash  . 


rS  fi  M-^iT'?"®  ('''■  ^^^^  "  *^°***  ^"^  ^'^ng  "  home*  as  well  as  the  purchase  money-recollect 
2  We  do  not  hITt^  ''  """"^  "^^^  ^""^  *^^'  ^«<=*"««  that »«  a"  ^«  get  l'^  debt  to  him     JruiVI) 

for  it  We  rlnnY.  ""^  ^If^o'^pt  for  the  balance  of  his  purchase,  because  we  receired  his  note 
o  on.  ^  «*    ^^^^^^^  '^^°''<*  ^o  Claims  for  the  same  sum. 

L^  «lf"    ^\^-''*'''°*  '^  ''""y  intended  to  record  our  gains  and  losses  by  business-  and  bs  wa 

have  not  earned  this  property  by  our  business,  it  would  not  be  proper  to  cam-  t  to  ?hat  accSint 
4  rhfTon^LTJ°'l\^  '°  '^r^**.  ™^«  °«  diflFerence  in  the  final  closing^of  theStock  account  ^ 

4.  The  discount  upon  these  notes  is  a  gain  to  us,  we  therefore  credit  Profit  and  iSss  for  i t 

8  Wll  ^nft  h'  "^^'J'Vr.^^'  ^'•^«^'  ^«<=*"««  ^«  get  in  debt  to  him  for  payinrthis  i^ount  for  us 
'•  "'L^rt^^ecoll^fRut  3"  ""''  "^^  ^'"^  "*'  Merchandise.  because'hJgei  into^rjeVrfoT'the 

''  ""^btre^^e^gefiL^^^rfcrthTsIL?^^^^^    ^«^*  '^'  *^^*  ^°^-'^*'  ^^'  "^^  ^«  -^*«^ 


30 


>s 


2500 


500 


1500 


) 


25000 


2426'  25 


2100 


50 


2900 

100 
103 


75 


NEW  YORK,  December  1st,  1866. 


1 

2 


8 


»  Mdse.,  Dr.  to  Sundries 
To  R.Morris    . 
u   Cash 


10. 


2 
1 


1 
2 
1 


1 
3 
2 


1 
2 
3 


1 
2 
2 


3 

2 


2 
2 
1 


Cash,  Dr. 

To  Bills  Receivable 


II. 


DBS. 

2500 


500 


*  Sundries,  Dr.  to  Mdse. 
Cash 
Bills  Receivable 


\ 


'  Sundries,  Dr.  to  Stock  . 
House  and  Lot  44  Broadway 
Cash     . 


1000 
500 


2000 
500 


21. 


*  Bills  Receivable,  Dr.  to  Sundries 
To  Cash        .... 
/'  Profit  &  Loss 


*  Mdse.,  Dr.  to  Sundries  . 
To  Cash    . 
'f   William  Hay    . 


25, 


15000 
10000 


2500 


500 


1500 


25000 


2100 


2426  25 
73  75 


Profit  &  Loss,  Dr.      . 
To  Cash 


2 
2 


3 
2 


==============       31. 

•  William  Hay,  Dr.  to  Sundries 

To  Cash        .        .        .        . 

//   Mdse.  .         .  '        * 


50 


2900 


» Warden  &  Bell,  Dr. 
To  William  Hay 


2000 
100 


so 


Profit  &  Loss,  Dr. 
To  Cash   . 


100 


^'  ^io^r^^''^'''  ^^^^''^  ^""^  ^°y  "^'•^  t^*°  th«  ^"»o»nt  for  which  we  credit 
3'  ffiimoSnt^h^in^^""'*-^*'^  *^  ""P*^^  ^*^«°««  °f  tl^i«  invoice? 

notes?  ^''  ""^^^'^  ^""^  ^^^  ^3.75,  it  being  a  deduction  from  the 

k  S5^  ^^'J®  ^'i^^*  H*y  for  this  order? 

»•  Su^  !f  ??^®^^*ed  in  this  case? 

7.  Why  debit  Warden  &  Bell  and  credit  Hay  for  this  order? 


31 


2200 
700 


103  ^  75 


100 


103  75 


•/ 


ON  OPENING  AND  CLOSING  THE  LEDGER. 

When  the  pupil  has  Journalized  the  first  Day  Book  and  afterwards  carefully  compared 
his  Journal  with  it,  he  will  open  his  Ledger.  In  a  clean  text  hand  write  the  title  of  each 
Account,  giving  it  five  or  six  more  lines  of  space  than  on  the  printed  Ledger.  Insert  the 
abbreviations  Dr.  and  Cr.^  at  the  top  of  the  page  only.  Then  post  the  Journal  into  the 
Ledger.  Before  attempting  this,  it  will  be  well  to  compare  the  entries  from  the  printed 
Journal  to  the  Ledger.  In  expressing  the  entry  upon  the  Ledger,  it  will  be  seen  that  a 
debit  is  always  To  that  Account  which  receives  credit  for  this  sum,  and  the  Cr.  Account 
expresses  the  same  entry  By  the  Account  that  was  made  Dr.  for  the  same  sum.  Where 
several  accounts  are  referred  to,  the  expression  is  either  To  or  By  Sundries.  But  the 
learner  will  acquire  the  process  more  readily  by  seeing  it  done  on  his  printed  Ledger  than 
by  any  other  means.  But  let  the  amount  always  be  first  inserted,  the  date  and  other  par- 
ticulars afterwards.  When  the  Journal  is  posted,'  compare  and  check  every  entry  from  it 
to  the  Ledger,  check-marking  them  thus  |/  with  a  pencil  on  the  inner  left-hand  marginal 
line  of  the  Journal  and  on  the  double  line  on  the  left  of  the  money  column  on  the  Ledger. 
Then  add  up  all  the  Accounts'  and  take  ofi"  a  Trial  Balance,  both  sides  of  which  must  come 
out  equal. — See  form  at  the  end  of  the  Ledger,  page  36. 

After  studying  the  oral  exercises  under  each  Account  upon  the  Ledger  until  he  can 
answer  them  readily,  the  pupil  is  prepared  to  close  his  Ledger.  Though  this  is  the  most 
difficult  part  of  the  process  of  Book-keeping  to  understand,  I  think  the  following  method 
of  elucidating  it  will  make  the  matter  intelligible. 

By  closing  a  Ledger  we  make  every  Account  upon  the  face  of  it  even.  *The  purpose 
of  this  is  to  dispose  of  all  the  Balances  in  such  a  manner  as  to  exhibit  and  record  the 
increase  or  decrease  of  Capital  up  to  the  present  time. 

I  have  found  by  experience  that  the  most  simple  and  rational  explanation  of  the  Balance 
Account  will  be  found  in  the  following  process.*  Let  the  pupil  be  required  to  make  up 
from  his  Ledger,  upon  waste  paper,  a  list  of  his  effects  thus : — 


From  the  Bills  Keceivable  Account  I  find  I  have  Notes  in  hand  amounting  to  $500. 
By  the  Cash  Account,  I  find  cash  in  hand      ......     3,080. 

By  W.  Hay's  Account,  I  perceive  he  owes  me     . 

Making  the  total  amount  of  my  effects  .... 

By  Bills  Payable  Account,  I  find  I  owe  on  my  Notes     300. 

And  to  Warden  &  Bell,  By  their  Account,  I  owe      .     600.     Am't  I  owe,      900. 

Leaving  my  present  Net  Capital         ...... 


300. 
3,880. 


2,980. 


Now,  compare  this  statement  with  our  Balance  Account,  and  I  shall  be  much  mistaken 
if  it  does  not  give  you  a  clear  insight  into  the  nature  and  object  of  that  Account.  You  will 
DOW  close  all  the  Personal  and  Property  Accounts,  ruling  them  off  to  the  same  pattern 
given  on  our  Ledger,  transferring  the  Balances  at  the  same  time  to  the  proper  side  of  the 
Balance  Account.  When  this  is  completed  you  will  find  the  present  Net  Capital  exhibited 
by  the  Balance  Account  as  in  the  above  statement,  $2,980,  which  according  to  the  Stock 
Account  is  $20  less  than  the  Capital  we  opened  the  books  with.  You  find  the  particulars 
of  this  loss  at  the  Profit  &  Loss  Account.  Close  that  Account  into  Stock  and  then  you 
will  find  that  the  Stock  and  Balance  will  exactly  close  each  other — a  result  that  must 
always  take  place  when  the  operations  are  correct,  because  all  gains  must  produce  a  cor- 
responding increase  of  property,  at  the  Dr.  side  of  Balance,  and  through  the  Profit  &  Loss 
Account  the  credit  side  of  the  Stock  is  increased  exactly  to  the  same  amount.  Losses  affect 
these  two  Accounts  through  the  same  channels  also  precisely  to  the  same  extent. 

These  remarks  apply  to  the  first  set  of  the  following  Books.  After  bringing  all  the 
Balances  down  and  posting  the  second  set,  the  process  of  closing  is  the  same  as  in  the  first 
Balance. 


1.  Where  are  the  abbreviations  Dr.  and  Cr.  placed? 

2.  What  13  the  first  thing  to  be  done  after  posting  the  Journal  ? 

3.  What  next  ? 

4.  What  is  the  purpose  of  closing  the  Ledger  ? 

*  See  also  Notes  2  to  6,  page  18.    And  directions  for  ruling,  pp.  56  and  57. 

a2 


Dr.       (What  I  Owe.) 


STOCK  ACCOUNT. 


(My  Effects.)     Cr.    i 


1866. 


!         I 


Nov.    80    Jo  Profit  &  Loss* 

//    Balance 


Dec. 


31 


To  Balance 


1866. 

OY.     1    By  Sundries 


3000.  1 

ao.       *■ 


80    By  Bal.  bro't  down 
'ec.    )[4      //  Sundries         27,980. 

n      u  Profit  &  Loss        f.    3 


2980 

25000 

520 

^8500 


1.  What  is  posted  to  the  Dr.  side  f 

2.  What  to  the  Cr.  side 

3.  When  is  the  account  closed  ? 

4.  How  does  it  then  close  ? 

5.  How  do  we  mark  the  transfers? 

6.  YThy  are  the  balance  entries  red? 


1.  What  I  owe. 

2.  The  amount  of  my  capital. 

3.  After  the  Profit  &  Loss  is  closed. 

4.  To  or  By  Balance. 
6.  F.  or  Folio. 
6.  Because  they  begin  the  new  account. 


(Pnrehases.) 


MERCHANDISE. 


(Sales.) 


1866. 

Nov.    i  5 

14 

10 


Dec. 


1 


to  Cash 
//  Bills  Payable 
//  Sundries  noo. 

/r  Profit  &  Loss        f. 


To  Sundries 

I  //  //  i600. 

//  Profit  &  Loss        f. 


600 
300 
800 
170 


1870 


2500 

2100 

600 


il866.    I 

Kov.     5  By  Cash 

25  //  Sundries 

80  //  Cash 


5200 


1.  What  is  posted  to  the  Dr.  side  ? 

2.  What  to  the  Cr.  side? 

3.  How  does  it  close  if  all  be  sold? 

4.  How  if  part  is  unsold  ? 

5.  How  do  we  find  the  $3000  balance  ? 


1870. 
1700. 

Gain      na 


^ec.  |14    By  Sundries 
81    :  It  Wm.  Hay 

ff   Balance 


S900. 


BOOO, 
460iL 


f. 


Gain       600. 


460 

630 

780 


1870 

1600 
700 

3000 

6200 

- 

1.  The  cost  and  charges  of  purchases. 

2.  The  sales  made. 

3.  To  or  By  Profit  &  Loss. 

4.  By  Balance,  and  To  or  By  Profit  &  LoflS. 

5.  Inventory.    See  p.  59. 


(Notes  Reeeived.) 


BILLS  RECEIVABLE.     (Notes  passed  away  or  lost) 


1866. 
Nov. 


1     To  Stock 


9D0O. 

1500. 

600. 


10    ^0  Bal.  bro't  down 
Dec.    14      //  Mdse. 

21    i  //  Sundries 


12 


S600. 

500. 


3000. 


2000 


2000 


600 

500 

2500 


3500 


1866.    I 
pov.    I 


1.  What  does  the  Dr.  side  of  this  account  show? 

2.  What  does  the  Cr.  side  show  ? 

3.  How  will  it  stand  when  all  notes  are  passed  away? 

4.  How  doc«  it  always  close? 


0 

30 


[)ec.  10 

31 


By  Cash 

II  Balance 


By  Cash 

//  Balance 


fol. 

1 

3 

1600 

'00 

1 

2000 

_ 

fol. 

2 

3 

600 

3000 

3500 

1.  The  notes  received. 

2.  Those  passed  away  or  lost. 

3.  Self  balanced. 

4.  By  Balance  for  the  notes  on  hand. 


•  The  rules  for  posting  do  not  apply  to  the  closing  entries. 

33 


2    Dr. 


(Money  Received.) 


CASH. 


(Money  Paid  or  lost.)      Cr. 


18M. 

Nov. 


Dee. 


i 

5 
10 
25 
80 


10 
14 


To  Stock 
Mdse. 
Sundries 
Mdse. 


4160L 

loeo. 

9060. 


To  Bal.  bro't  down 
V  Bills  Receivable 
//  Mdse. 
//  Stock  i*gO; 


1 

1000 

// 

460 

H 

1590 

n 

330 

u 

780 

4160  1 

3080  ' 

2 

500 

// 

1000  i 

// 

10000  i 

14580  1 

1.  What  does  the  Dr.  side  of  this  account  show? 

2.  What  does  the  Cr.  side  show? 

3.  What  does  the  difference  represent? 

4.  How  doea  the  account  close  ? 

5  How  will  it  stand  when  all  your  money  is  paid  away? 

6  Why  can  the  credit  side  never  exceed  the  debtor? 


1806. 

Nov. 

5 

14 

80 

Dee. 

1 

21 

25 

31 

1 

By  Mdse. 
//        // 

//    Profit  &  Loss 
h  If  loeo. 

//   Balance  fol. 


By  Mdse. 

//  Bills  Receivable 

u  Mdse. 

//  Profit  &  Loss 

N  William  Hay 

//  Profit  &  Loss      7280. 

H  Balance  fol. 


1 

w 

H 
H 

3 


2 

// 
// 
n 
It 
11 


600 
200 
150 
130 

3080 


"ilBOT 


500 

2426 

2000 

50 

2200 

103 

7800 


146S0 


26 


75 


1.  The  Dr.  side  shows  all  cash  received. 

2.  The  Cr.  side  shows  all  cash  paid  away. 

3.  The  difference  represents  the  balance  in  hand. 

4.  It  always  closes  By  Balance. 

6.  Wlien  all  is  paid  away  the  account  must  be  even. 
6.  Because  we  cannot  pay  away  more  than  we  receive. 


(My  Notes  Paid.) 


BILLS  PAYABLE. 


(My  Notes  passed  away.) 


1808. 

Nov. 


Dec. 


30  !  To  Balance 


31 


To  Balance 


fol. 


foL 


1.  What  do  the  Dr.  and  Cr.  sides  of  this  acc't  show? 
8.  What  does  the  difference  represent? 
8.  How  does  the  account  always  close  ? 


1866.  I 

Nov.  14    By  Mdse. 


80 


By  Bal.  bro't  down 


1.  The  Dr  side  is  the  amount  taken  up,  the  Cr.  side  the  notot 
«  passed  away. 

2.  The  balance  I  still  owe  on  my  notes. 

3.  Always  To  Balance,  never  By  Balance. 


(My  Acct.  against  him.) 

WTT.T.T  A  M  H  A  Y.            (His  Ac  ft.  against  me.) 

1886. 

Nov. 

25 

80 
81 

i 
To  Mdse. 

1 

2 

300 

1886. 

Nov. 

Dee. 

80 

21 
81 

By  Balance              fol. 

3 

2 

// 

3 

300 

Dee. 

1  To  Bal.  bro't  down 
//   Sundries          '"g- 

aooo. 

800 

2900 

1 

By  Mdse. 

u    Warden  &  Bell   aoo. 

//    Balance              fol. 

100 

100 

3000 

■fr 

3200 

3200 

1 

1.  What  does  the  debit  and  credit  side  of  t 

2.  How  does  it  close  ? 

his  at 

scount  Bh( 

>w?         1.  Explaii 
2.  All  per 

led  in  the  parenthesis  at  the  he 
sonal  accounts  close  either  To  c 

sad. 
)rBy 

Balance. 

WARDEN  &  BELL. 

laesL 

Nov. 

30 
31 

To  Balance              fol. 

3 

2 

3 

600 

1866. 

Hov. 

14 
30 

By  Mdse. 

1 

600 

Dee. 

To  Wm.  Hay 
//   Balance               fol. 

100 

500 

By  Bal.  bro't  down 

600 

600 

600 

BOBEI 

IT  MOBI 

US. 

18ML 

Dec. 

31 

To  Balance              fol. 

3 

2000 

1 

Deo. 

1 

By  Mdse. 

2 

2000 

. 

34 


fl 


Dr^(ltsValue  or  Cost.)     HOUSE,  44  BROADWAY.   (What  it  brings  me  m.)  Cr 


1866. 

Dec. 


14 


To  Stock 


1.  How  does  this  accotmt  close  if  the  property  be  on  hand? 

2.  How  if  sold?  tr    IT     J 


1866. 

Dec. 


31 


By  Balancf 


I'oL 


3 


:K 


1.  By  Balance  if  you  still  own  the  propertv. 

2.  If  sold  close  To  or  By  Profit  k  Loss.     ' 


(Expenses  and  Losses.) 


PROFIT  &  LOSS. 


(Gaini.) 


1866. 

Nov. 


80 


Dee. 


25 
81 


To  Cash 

II      u 


KetLoa 


Ml. 


To  Cash  2 

//      //  158.76       2 

//  Stock  for  net  gain,  f.    1 


150 
180 


280 


50 

103 
520 


673 


75 


75 


1866. 

Nov. 


1.  What  do  the  Dr.  and  Cr.  sides  of  this  account  show? 

2.  What  accounts  close  into  it? 

?*  S^®*^  ^^  **  closed,  and  into  what  account  does  it  close? 
4.  What  does  the  difference  between  the  sides  represent? 


BALANCE 

(ly  Effects  and  Debts  dne  me.) 


1866. 

Nov. 


80 


Dee. 


81 


To  Bills  Receivable 
//  Cash 
//  Wm.  Hay 

Net  capital  3980 


f. 


1 

2 


To  Mdse.  fol. 

//  Bills  Receivable 
//  Cash 

//  Wm.  Hay          m«»^ 
••  House  

Net  cap.  28600. 


1 

2 
8 


500 

8080 

800 


3880 


3000 
3000 
7300 
3000 
16000 


31800 


1.  What  is  transferred  to  the  Dr.  side? 

2.  What  to  the  Cr.  side? 

3.  What  does  the  diflFerence  represent? 

4.  How  does  the  account  close? 

6.  Is  Stock  or  Balance  first  closed? 


Dee. 


10    By  Cash 
80 


21 
31 


//  Mdse.  380.  fol. 

n  Stock,  net  loss    fol. 


By  Bills  Receivable 
11  Mdse.         «gg  fol. 

Net  Gain 


52a 


I 

1 
1 
1 

90 

170 
20 

1 
1 

280 

2 
1 

78 
600 

75 

1 

678 

76 

1.  The  Dr.  side  shows  all  expenses  and  losses,  and  the  Cr. 

side  all  gains. 

2.  All  accounts  exhibiting  gain  or  loss  are  closed  into  this 

account. 

3.  This  is  the  last  account  closed  but  two.    It  alwavs  c1o«m 

into  Stock,  never  into  Balance. 

4.  The  difference  represents  the  net  gain  or  loss. 


ACCOUNT. 

(What  my  concern  owes.) 


1866. 

Nov. 


Dee 


30 


31 


By  Bills  Payable 
Warden  &  Bell 
Stock  for  net  capital    1 


// 


900. 


By  Bills  Payable 
II  Warden  &  Bell 
n  R.  Morris 
M  Stock  for  net  capital 


2800. 


1.  All  my  effects. 

2.  All  amounts  that  I  owe. 

3.  Net  capital  or  net  insolvency. 

4.  By  Stock  for  net  capital,  or  To  Stock  if  I 

5.  Usually  the  Stock  first. 


•m  inaoIveBt. 


35 


ProofSheetNoT.80,  18«6.   Drs.         Crs.       Proof  Sheet  Dec.  81, 1866.   Drs.  Cbs. 


u. 


'ii 


ii 


Stock 

Mdse. 

Bills  Receivable 

Cash 

Bills  Payable 

Wm.  Hay 

Warden  &  Bell 

Profit  &  Loss 


f. 


Stock  f 

Mdse. 

Bills  Receivable 

Cash 

Bills  Payable 

Wm.  Hay 

Warden  &  Bell 

R.  Morris 

House  in  Broadway 

Profit  &  Loss 


Note.— These  proof  sheets  or  trial  balances  are  taken  off  for  the  purpose  of  ascertaining^ 
it  both  sides  of  the  Ledger  are  alike  in  amount.  If  this  sheet  comes  out  correct,  your 
Ledger  will  be  sure  to  balance;  but  if  there  should  be  a  difference  between  its  sides  the 
Ledger  will  certainly  not  balance  until  the  errors  are  sought  out  and  rectified.  ' 

Teacher's  Examination.— After  closing  the  first  of  the  preceding  sets,  the  pupil 
should  be  able  to  answer  his  teacher  the  following  questions.  If  he  cannot  readily  do  so 
he  should  refer  again  to  the  instructions  under  the  accounts.  If  he  does  not  wish  to  cheat 
himself  out  of  the  instruction  that  he  desires  to  obtain,  he  should  by  no  means  consult  the 
key, — that  being  intended  for  teachers  only,  those  who  teach  themselves  included. 

Q.  1.— What  was  your  net  capital  at  the  time  of  closing,  and  which  of  the  accounts 
show  it  ? 

-What  was  your  net  gain  or  loss,  and  which  of  the  accounts  show  it  ? 

-What  was  the  whole  amount  of  your  gain,  and  what  was  the  whole  amount  of 

your  loss. 
-What  did  you  gain  or  lose  on  your  Merchandise  account? 
-What  was  the  amount  of  Merchandise  purchased  ? 
-What  was  the  amount  of  your  sales  ? 

-What  amount  of  Merchandise  was  there  on  hand,  or  was  there  any  ? 
-What  amount  of  Cash  on  hand  ? 
-What  amount  of  Bills  Receivable  on  hand  ? 
-What  do  you  owe  on  your  Notes  ? 

-What  is  the  whole  amount  of  your  debts,  and  what  account  shows  it? 
-What  is  the  whole  amount  of  property  you  now  possess,  and  what  account 

shows  it  ? 

What  amount  of  property  did  you  possess  at  the  time  of  opening  the  books  and 
what  account  shows  it?  ' 

What  were  your  average  daily  sales  for  the  month  of  November,  the  time  your 
books  were  open,  allowing  there  were  twenty-six  business  days  in  it  ?* 

What  was  the  gain  per  cent,  on  your  total  sales  ?-(■ 

The  pupil  should,  when  he  balances  his  Ledger  the  second  time,  answer  the  same  ques- 
tions upon  the  balance  of  each  account.  ^ 


2. 
3. 

4. 

5. 

6. 

7. 

8. 

9. 
10. 
11. 
12. 

13.- 

14.- 

15- 


»  Found  thu»-Total  sales  per  Merchandise,  Crs.  is  $1870  --  26  =  71  fi  average  daily  sales. 

36 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 

EXEMPLIFYING  THE   TRANSFER  OF  BUSINESS 

FROM   THE   PRECEDING  TO   THE   PRESENT   SET. 
THIS   SET   EMBKACES  ALL   THE   MOST   APPKOVED   FORMS   OF 

AUXILIARIES, 

CONNECTED  AS  SUCH  WITH  THE  PRINCIPAL  BOOKS. 


Also,  concise  and  comprehensive  rules  for  Journalizinsr,  practically  illustrated  with  ORAL 
EXERCISES. 
The  written  exercises  embrace — 

Illustrations  of  Buying  and  Selling  Merchandise  on  private  Account  and  on  Account  of 
others. 

Buying  and  selling  the  same  on  joint  Account. 

Importing  and  Exporting  on  private  Account,  on  Account  of  others,  and  on  Account  of 
ourselves  and  others  in  Company. 

Receiving  and  forwarding  Merchandise. 

The  management  and  settlement  of  Executors'  Accounts. 

Buying,  Selling,  Remitting,  Collecting,  Discounting,  Accepting,  and  Paying  Bills  of 
Exchange. 


SHIP  OWNERS'  ACCOUNTS. 

As  sole  owner,  as  part  owner,  and  as  agent  for  the  owners,  exemplifying  a  dividend  and 
settlement  of  their  Accounts,  the  adjustment  and  settlement  of  Marine  Losses,  and  of  Loss 
by  Fire. 

We  have  so  studiously  avoided  lengthening  the  process  of  instruction  by  any  unnecessary 
entries,  that  probably  no  two  entries  can  be  found  in  the  set  which  do  not  illustrate  a 
different  application  of  the  principles  of  the  science.  On  the  other  hand,  the  utmost  care 
has  been  taken  to  carry  instruction  into  every  department  of  the  most  extensive  and 
diversified  commerce,  to  omit  no  information  necessary  for  forming  the  most  accomplished 
Accountant.  The  whole  is  condensed  into  about  twelve  pages  of  Day  Book  and  Journal 
accompanied  with  such  mental  exercises  as,  if  attended  to,  will  leave  the  learner  no  means 
ot  getting  through  the  written  exercises  without  mastering  the  subject. 


DIRECTIONS  TO  TEACHERS. 

It  has  been  before  stated  that  the  preceding  set  is  only  designed  as  an  introduction  for 
those  altogether  uninitiated.  Those  who  understand  the  disposition  of  the  debits  and 
credits  m  the  Ledger,  will,  after  a  perusal  of  the  initiatory  set,  commence  with  the  study 
ot  the  following  RULES  AND  ORAL  EXERCISES.  They  afterwards  study  the  defini- 
tions  and  answer  the  interrogatories  upon  the  Auxiliaries.  In  some  cases  it  may  be  nece<. 
sary  to  write  the  Cash  Book  and  Bill  Books,  but  most  of  learners  will  find  no  difficulty  in 
applying  them  without  this  trouble.  The  process  of  teaching  those  who  have  been  through 
the  introductory  set  and  those  who  commence  here,  is  hereafter  in  all  respects  the  same.  " 

37 


I! 


SET  II.— DOUBLE  ENTKY  BOOK-KEEPING. 

RULES  FOR  JOURNALIZING,  WITH  ORAL  EXERCISES. 


Note. — The  pupil  should  lay  a  sheet 

Give  the  general  rule  for  debits 
and  credits. 

Repeat  the  general  rule  for  open- 
ing books. 

Examples. 
QuES.  1.  If  you   begin   business 
with  a  capital  of  $7000 
cash,  what  will  be  your 
Journal  entry? 

2.  If  you  have  cash  $7000, 
merchandise  $3000,  W. 
Hay  owes  you  $5000,  and 
you  own  the  brig  T^oy 
worth  $5000  ? 

3.  Suppose  you  owe  at  this 
time  on  your  notes  and 
bonds  $2000,  to  R.Morris 
on  acct.  $3000. 

4.  State  more  particularly 
what  is  meant  by  the 
term  "Sundries  to 
Stock." 


LESSON  I. 

of  paper  over  the  answers  while  he  reads  the  questions  to  himself. 

Rule  I. — The  debits  and  credits  arising  out  of  every 
transaction  must  be  equal  in  amount. 

Rule  II. — The  Stock  account  represents  myself,  and 
must  therefore  be  debited  for  what  I  now  owe  and  cre- 
dited for  what  I  now  possess. 

Ans.  1.  Cash,  Dr $7000 


7000 
3000 
5000 
5000 
5000 


$7000 
20000 


2000 
3000 


5.  Explain  the  full  mean- 
ing of  the  expression 
"Stock  to  Sundries, 
your  3d  answer. 


in 


II 


Hi 


h^ 


Repeat  the  rule  for  debiting  per- 
sons. 

Examples. 

6.  If  W.  Hay  buys  $600 
worth  of  mdse.  of  you  on 
Book  acct.  ? 

7.  If  you  pay  R.  Morris 
$1000  cash  which  is  at 
his  credit  on  your  Books  ? 

8.  If  Morris  make  an  abate- 
ment of  $100  from  the 
above  acct.  and  pay  him 
$900  in  full  for  balance? 

Repeat  the  rule  for  crediting  per- 
sonal accounts. 

Examples. 

9.  SupposeW.  Hay  pays  you 
the  above  $600  in  cash  ? 
If  he  fail  and  you  receive 
$300  cash  and  lose  the 
balance  ? 


10. 


To  Stock, 

2.  Sundries  to  Stock, 
Cash, 
Mdse. 
W.  Hay,  . 
Brig  Troy, 

3.  Stock  to  Sundries, 
To  Bills  Payable, 

R.  Morris,  . 

4.  It  may  be  stated  more  fully  thus :  Several  accts 
are  Dr.  to  the  Stock  acct.  which  is  credited 
for $20000 

The  Cash  acct.  is  Dr.  for .  .  $7000 
And  the  mdse.  acct.  is  debtor  for  3000 
And  Wm.  Hay's  acct.  debtor  for  5000 
And  the  Brig  Troy's  account  is 

debtor  for    .         .         .         .    5000 

5.  To  express  it  in  full  we  might  say :  The  Stock 

account  is  debtor  to  several  accts.  for  $5000. 
viz.,  it  is  Dr.  to  the  Bills  Payable  account^ 
which  is  credited  for     .         .         .   $2000 
And  it  is  Dr.  to  R.  Morris's  account, 

which  is  credited  for  .     3000* 

Rule  III. — When  he  gets  into  my  debt  he  is  Dr.  for 

the  amount.     When  I  get  out  of  his  debt  he  is  Dr.  for 

what  I  pay  or  cease  to  owe  him. 

Ans.  6.  Wm  Hay,  Dr. 

To  mdse.  sold  him  on  acct. 

7.  R.  Morris,  Dr.  . 

To  Cash  paid  him  in  full, 

8.  R.  Morris  to  Sundries,  to  close 

To  Profit  &  Loss,  . 
//    Cash  paid  him  in  full, 
Here  we  only  pay  Morris  $900,  but  we  debit  him  for 
$1000 — what  we  cease  to  owe  him. 

Rule  IV.  When  I  get  into  his  debt  he  is  Cr.  for  the 
amount.  When  he  gets  out  of  my  debt  he  is  Cr.  for 
what  he  pays  or  ceases  to  owe  me. 

Ans.  9.  Cash,  Dr $600 

To  Wm.  Hay  in  full,     .         .  600 

10.  Sundries  to  Wm.  Hay,  to  close  acct  600 

Profit  &  Loss  for  abatement,        .     300 
Cash  received  in  full, .         .         .     300 
Here  you  have  only  received  $300,  but  the  rule  re- 
quires you  to  credit  him  for  $600 — the  amount  he  ceases 
to  owe  you. 


$600 
1000 
1000 


$600 

1000 

100 
900 


•  While  this  and  the  preceding  answer  will  give  the  learner  a  distinct  conception  of  the  meaning  of  all  similar  Journal  exores. 
Kons,  these  expeditions  at  the  same  tune  show  how  much  accountants  have  abbreviated  common  language  without  obscurina 
their  meai»u»g;  for  while  the  roles  are  observed  no  language  is  less  liable  to  be  misunderstood  than  that  used  by  accountanti 

38 


SET  II.— DOUBLE  ENTRY  RULES. 


Quest.  11.  If  Hay  balance  his 
Book  account  by  giving  you 
his  note  for  $600  ? 

12.  If  he  afterwards  fail  and 
you  lose  the  am't  of  the  note  ? 

Repeat  the  general  rule  for  re- 
ceiving and  delivering  property. 

Examples. 

13.  If  you  sell  merchandise  for 
cash  $500? 

14.  If  you  sell  it  for  the  pur- 
chaser's note  ? 

15.  If  you  pay  your  own  note 
for  $1000,  half  in  cash  and 
half  in  merchandise? 

16.  If  you  buy  merchandise  for 
cash  $100  ? 

17.  If  you  give  your  note  for 
the  same  purchase  ? 

18.  If  you  buy  $400  worth  of 
merchandise  and  pay  the 
amount  in  other  merchandise 
from  store? 

Give  a  more  particular  rule  for 
debiting  property  accounts. 

Examples. 

19.  If  you  buy  the  brig  Tribune 
for  $12,000  and  pay  $6000  in 
cash,and  give  a  Bottomry  bond 
on  the  vessel  for  the  balance  ? 

20.  Suppose  this  vessel  becomes 
yours  by  the  legacy  of  a  de- 
ceased friend  ? 

21.  If  you  pay  cash  $1000  for 
repairing  her  ? 

Give  the  rule  stating  when  pro- 
perty accounts  are  always  credited. 

Examples. 

22.  If  you  receive  $1000  cash 
for  freight  of  Brig  Tribune  ? 

23.  If  your  agents  Taylor  &  Co. 
advise  you  that  they  have  re- 
ceived $1500  cash  for  freight 
to  New  Orleans  ? 

24.  If  you  sell  the  Brig  Tribune 
for  $16,000  and  receive  in 
payment  a  dwelling-house  in 
2d  street  and  a  Bill  of  Ex- 
change on  London  for  $6000  ? 

26.  If  you  lose  the  Brig  Tribune 
■    by  fire  or  shipwreck    before 

she  is  insured  ? 
26.  If  you  present  $500  cash  to 

a  friend  ? 


Ans.  11.  Bills  Receivable  Dr.     .         .        600 
To  Wm.  Hay  for  his  note  to  close  acct. 

600 


600 


12.  Profit  and  Loss  Dr.  . 

To  Bills  Receivable,    .         .         .  600 

Rule  V.  The  thing  received  Dr.  to  the  thing  delivered. 


500 


13.  Cash  Dr 

.   To  Merchandise, 

14.  Bills  Receivable  Dr. 
To  Merchandise,    . 

15.  Bills  Payable  to  Sundries, 
To  Cash  for  money  paid, 

II  Merchandise  for  sale, 

16.  Merchandise  Dr. 
To  Cash,     .... 

17.  Merchandise  Dr. 
To  Bills  Payable, 

18.  Merchandise  Dr 
To  Merchandise,  .         . 

Some  contend  that  any  entry  of  such  transactions  is 
unnecessary — ^that  it  is  like  giving  change  for  a  $50 
bank  note.  But  if  such  transactions  are  not  recorded 
your  merchandise  account  will  not  show  the  amount  of 
your  purchases  nor  the  amount  of  your  sales. 
Rule  VI.  When  property  becomes  mine  it  is  Dr.  for 

its  cost  or  value.     When  it  costs  me  anything 

afterwards  it  is  Dr.  for  that  cost. 

19.  Brig  Tribune  to  Sundries,  .  12,000 


500 
1000 


100 
100 


400 


500 

500 

500 
500 

100 

100 


400 


12,000 


6000 
6000 

12,000 


To  Cash, 
//  Bills  Payable, 

20.  Brig  Tribune  Dr. 
To  Stock,    . 

Here  the  property  is  Dr.  for  its  value  although  it 
costs  you  nothing. 

21.  Brig  Tribune  Dr.      .         .         .      IQOO 

To  Cash, 1000 

Rule  VII.  When  it  brings  me  in  any  thing  it  is  Cr. 
for  the  amount.  When  it  ceases  to  be'mine  it  is 
Cr.  for  its  value  or  what  I  receive  for  it. 

22.  Cash  Dr looo 

To  Brig  Tribune  for  Freight, 

23.  J.  Taylor  &  Co.  Dr.  .         .         .      1500 
To  Brig  Tribune,  for  freight  collected, 

24.  Sundries  to  Brig  Tribune, 
House  in  2d  street,      .         .         .  10,000 
Bills  Receivable,  .         .         .     6,000 


1000 

1500 
16,000 


25.  Profit  and  Loss  Dr.  .         .         .  10,500 

To  Brig  Tribune,  to  close  account,      '         10,500 


26.  Profit  and  Loss  Dr.   .         .         .        500 

To  Cash,      .         .  .         .  500 

Thus,  you  perceive,  when  property  ceases  to  be  yours, 
either  by  sale,  loss,  or  giving  away,  it  is  to  be  credited' 
39 


\ 


il 


It 


SET  II.— DOUBLJL  ENTRY  BOOK-KEEPING. 

RULES  FOR  JOURNALIZING,  WITH  ORAL  EXERCISES. 


DOUBLE  ENTRY  EULES. 


Repeat  the  Rule  for  debiting  and 
crediting  Profit  and  Loss  accounts. 

Examples. 
QuES.  1.   If  you  lose  your  purse 
with  SlOO  cash  in  it? 

2.  If  you  find  S500  cash  and 
cannot  find  the  owner  ? 

3.  If  you  pay  cash  for  a  new 
suit  of  clothes  850  and  8lOO 
for  new  house  furniture. 

4.  If  you  lose  $1000  worth  of 
mdse.  by  fire,  uninsured  ? 

Repeat  the  Rule  respecting  Bills 
of  Exchange,  Drafts,  Orders, 
&c. 

5.  What  is  a  Bill  Receivable  ? 

6.  What  is  a  Bill  Payable? 

7.  If  you  draw  on  R.  Morris 
for  $100  and  sell  the  bill  for 
cash  at  par  ? 

8.  If  you  sell  at  5  per  cent,  pre- 
mium? 

9.  If  you  sell  at  5  per  cent,  dis- 
count ? 

10.  What  will  be  Morris's  entry 
when  he  accepts  this  bill  ? 

11.  If  Morris  draw  on  you  at 
sight  in  favor  of  S.  King,  for 
$1000,  and  you  pay  the  bill  in 
cash  ? 

12.  If  he  draw  at  60  days'  sight 
in  favor  of  Wm.  Hay,  and 
you  accept  ? 

13.  Afterwards  you  take  up  this 
acceptance  with  cash  ? 

14.  If  Wm.  Hay  draw  an  order 
on  you  for  $50  in  favor  of  J. 
Toole,  which  you  pay  in  mdse. 
from  store  ? 

15.  If  you  owe  James  Day  $20 
and  give  him  an  order  on  Hay 
payable  in  mdse.  for  $20  ? 

16.  If  you  buy  a  Bill  of  Ex- 
change for  $1000  for  cash  at 
par? 

17.  If  you  buy  at  5  per  cent,  pre- 
mium ? 

18.  If  you  buy  at  5  per  cent,  dis- 
count ? 


LESSON  IL 

Rule  VIII.  Profit  and  Loss  accounts  are  always  debited 

when  I  lose  and  credited  when  I  gain. 
Ans.  1.  Profit  and  Loss,  Dr.  .         .         .     $100 


$100 

500 
150 


To  Cash, 

2.  Cash,  Dr 500 

To  Profit  and  Loss, 

3.  Sundries  to  Cash,  .... 
Profit  and  Loss  or  Expense  acc't  for 

the  clothes, 50 

House  furniture  for  the  articles  bo't        100 

.    4.  Profit  and  Loss,  Dr.        .         .         .     1000 

To  Merchandise,     ....  1000 

Rule  IX.  Credit  a  person  always  when  you  draw  on 
him  on  your  own  account,  and  debit  him  when  he 
draws  on  you  on  his  account.* 

5.  Any  obligation  on  paper  which  I  hold  against  others. 

6.  The  same  kind  of  obligations  which  I  have  given 
to  others,  and  which  they  are  holding  against  me. 

7.  Cash,  Dr loo 

To  R.  Morris, 

8.  Cash  to  Sundries,  ....       105 
To  R.  Morris  for  the  bill, 

Profit  and  Loss  or  Exchange  acc't.  for 
the  premium, . 

9.  Sundries  to  R.  Morris,  . 
Cash  for  the  net  proceeds,  .         95 
Profit  and  Loss  or  Exchange  for 

Discount,    ....  5 

10.  Duff,  Dr 100 


To  Bills  Payable, 

11.  R.  Morris,  Dr. 
To  Cash, 

12.  R.  Morris,  Dr. 
To  Bills  Payable, 

13.  Bills  Payable,  Dr. 
To  Cash, 

14.  W.  Hay,  Dr. 
To  Merchandise, 

15.  James  Day,  Dr. 
To  William  Hay, 

16.  Bills  Receivable,  Dr. 
To  Cash, 

17.  Sundries  to  Cash, 
Bills  Receivable  for  the  Bill, 
Profit  and  Loss  or  Exchange  for 

the  Premium, 

18.  Bills  Receivable  to  Sundries, 
To  Cash  for  money  paid, 

Profit  and  Loss  for  Discount, 


100 
100 

5 

100 


1000 
1000 
1000 


50 


20 

1000 


100 

1000 

1000 

1000 

50 

20 


1000 

50 
1000 


1000 
1050 


Hi 


950 
50 

it  ^^lt'^TaTon";?^e^V5.r^^^^^^^^  and  the  two  following  qnestions;  otherwise 

on  one  or  the  other  of  the  Bill  AccouX  ^  ^"  '''^  ''"^  ^®  '*"'"  "P°°  ^  correspondent  mnat  appear 

40 


Quest.  19.  If  you  sell  this  bill  at 
10  per  ct.  premium  for  cash  ? 

20.  If  you  sell  it  at  10  per  ct. 
discount? 

Give  the  rule  for  keeping  the 
accounts  of  consignments  received. 

21.  What  do  you  do  with  the  In- 
voice of  the  property? 

Examples. 

22.  If  you  receive  $1000  worth 
of  goods  from  Morris  for  sale 
on  his  acct.  You  give  bonds 
for  $500  duties  and  pay  frt., 
&c.  in  cash,  $100? 

23.  If  you  sell  $100  worth  of 
these  goods  for  cash? 

24.  If  Morris  draw  on  you  at 
sight  for  $30.0  and  you  pay 
the  draft,  $100  in  his  own 
goods,  $100  worth  of  your 
own  goods,  and  $100  in  cash? 

25.  How  is  the  net  proceeds 
found  on  any  account  sales  ? 

26.  Suppose  Morris's  goods  all 
sold  for  $2000.  You  have 
paid  charges  $700,  your  com- 
mission is  $100,  leaving  the 
net  proceeds  $1200.  How  do 
you  close  the  sales  ? 

27.  Where  should  this  entry  be 
first  made? 

28.  Why  not  credit  Morris  for 
the  amount  of  the  Invoice  of 
the  above  consignment? 

29.  If  he  draw  on  you  for  $500 
on  acct.  of  the  sales? 

Give  the  rule  for  keeping  acct. 
of  property  you  consign  to  others. 
Examples. 

30.  If  you  ship  by  the  Herald 
and  consign  to  R.  Morris, 
London,  for  sale  on  your  own 
acct.  Mdse.  4000,  pay  charges 
in  cash,  $400,  give  your  note 
for  insurance,  600 :  =  $5000  ? 

31.  If  you  draw  on  Morris  for 
$500  on  %  of  this  consignm't  ? 

32.  If  he  return  you  acct.  sales 
$6000,  with  a  remittance  in 
specie  in  full  for  same  ? 

33.  If  he  send  you  the  acct. 
sales  without  the  remittance  ? 

34.  If  you  receive  acct.  sales, 
$6000,  and  before  making  an 
entry  of  the  returns  draw  on 
him  and  sell  the  bill  for  cash 
at  8  per  ct.  premium  ? 


Ans.  19.  Cash  to  Sundries         .         .         .  1100 

To  Bills  Receivable     .         .         .  1000 
//  Profit  &  Loss,  for  premium     .   •  100 
20.  Sundries  to  Bills  Receivable    .         .             1000 
Cash  for  net  proceeds      .         .         .     900 
Profit  &  Loss  for  the  10  per  ct.  Dis- 
count      100 

Rule  X. — Debit  the  owner's  Sales  for  all  charges 
incurred,  and  credit  the  same  account  for  what  the  pro- 
perty sells  for. 

21.  I  enter  a  copy  of  it  on  the  Invoice  Book,  but 
make  no  other  entry  of  it. 

22.  R.  Morris's  Sales  to  Sundries  .         .     600 

To  Bills  Payable  for  the  bonds    .  500 

//  Cash  paid  for  freight,  &c.       .  100 

23.  Cash,  Dr 100 

To  Morris's  Sales        ...  lOU 

24.  R.  Morris,  Dr.  to  Sundries       .        .     300 

To  Morris's  Sales        .         .         .  100 

f/  Merchandise.         ...  100 

H  Cash 100 


25.  By  deducting  all  charges,  including  my  commis- 
sion, from  total  sales. 

26.  R.  Morris,  Sales  to  Sundries  to  close 
acct.        .         .         .         .         .  1300 

To  Commission  ....  lOU 

It  R.  Morris,  for  net  proceeds    .  1200 

27.  The  particulars  of  such  entries  must  always  ap- 
pear upon  the  Day  Book. 

28.  Because  I  do  not  get  in  debt  to  him  for  any  thinw 
but  the  net  proceeds  of  what  the  goods  sell  for. 

29.  I  debit  his  private  account  for  all  advances  made 
on  account  of  the  consignment,  and  never  the 
consignment  account. 

Rule  XL — Debit  Shipment  or  Adventure  to  such  a 
place  for  the  cost  and  charges  of  the  investment,  and 
credit  the  same  account  for  what  it  brings  me  in. 


30.  Shipment  to  London  to  Sundries 

To  Mdse 

//  Cash     .... 
//  Bills  Payable 


5000 


4000 
400 
600 


31.  I  credit  his  private  account  for  it — not  the  ship- 


ment to  London. 

32.  Cash,  Dr.        .        .         . 

To  Shipment  to  London 

33.  R.  Morris,  Dr. 

To  Shipment  to  London 

34.  Cash,  Dr.    .    .    . 

To  Shipment  to  London 
41 


w 
6000 

6000 

6480 


6000 
6000 
648G 


i  I 


'ill 

t 

i  • 
I  1 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 


RULES  FOR  JOURNALIZING,  WITH  ORAL  EXERCISES. 

LESSON  III.— ON  JOINT  ACCOUNTS. 

Joint  Accounts  » or  special  partnerships  imply  those  operations  in  which  several  indi- 
viduals or  commercial  houses  unite  in  the  purchase  and  sale  of  a  particular  article  on  specu- 
lation.  Iheir  joint  interest  is  confined  solely  to  these  transactions,  and  the  parties  give 
themselves  no  joint  title,  neither  do  they  become  publicly  known  as  a  firm.  Their  sales 
and  sometimes  their  purchases,  are  effected  by  a  manager,  who  generally  keeps  the  account 
ot  tbe  same  in  his  own  private  books;  and  the  partnership  terminates  for  the  time  with  the 
sa  e  ot  the  joint  property.  The  learner  must  understand  that  although  we  cannot  avoid 
calling  these  connexions  partnerships,  yet  they  differ  essentially  from  General  Partner- 
^IPS,  where  the  parties  are  legally  and  publicly  known  under  a  firm  or  title,  as  Hay, 
wood  &  Co.,  and  who  contribute  a  certain  capital  for  the  purpose  of  carrying  on  a  general 
business  for  a  specified  period.  j    &  & 

,-J^%'^^T^^''  ?f  ^^^jy^J"^  ^^^^^  ^^®P«  *^«  account  «  in  his  own  private  books  under  the 
title  ot  bales  in  Co.*  If  he  have  more  than  one  in  hand,  he  distinguishes  them  by  prefix- 
ing to  the  title  numbers,  as,  1st  Co.,  2d  Co.,  &c. »  The  manager  debits  his  joint  account  for 
HIS  own  share  only  of  the  first  cost,  and  for  all  charges  incurred  while  in  his  hands,  ahd 
credits  the  same  account  for  the  total  sales,  for  the  other  partners'  shares  in  the  property 
as  well  as  his  own.*  f    f     j 

The  following  remarks  will  be  useful  in  enabling  the  student  to  comprehend  the  transac- 
tions  to  which  this  rule  is  to  be  applied.  The  manner  of  opening  the  accounts  by  the  manager 
as  well  as  the  silent  partners,  will  vary  according  to  the  manner  of  making  up  the  joint 
stock  put  m  speculation.  When  the  manager  or  any  of  the  partners  purchases  or  furnishes 
property  to  the  concern,  '  each  of  the  other  partners  must  be  immediately  furnished  with  a 
copy  ot  the  invoice;  and  when  the  sales  are  completed, »  each  one  must  have  a  copy  of  the 
account  sales.  The  joint  stock  is  generally  made  up  in  one  or  the  other  of  these  three 
ways. 

1.  When  each  Partner  advances  his  own  Share— Each  silent  partner  keeps  his 
account  under  the  title  of  »  "Adventure  in  Co.,"  debiting  it  for  its  costf and  crediting  it 
lor  what  It  brings  him  in,  precisely  as  he  would  a  private  adventure  or  consignment. 

I  he  manager  makes  his  ''  Sales  in  Co.  Dr.  for  his  own  share  only,  and  receives  the 
other  partners  shares  as  he  would  consignments. 

..cfi  ^^-  '^n^,?]f'^t^^^  purchases  OR  FINDS  THE  WHOLE  Stock— "  As  before  he  debits 
bales  in  Co.    for  his  own  share,  and  he  debits  each  of  the  silent  partners  for  their  share- 

they  at  the  same  time  crediting  him  and  debiting  their  "Adventures  in  Co." 
3.  Ir  THE  Manager's  share  be  paid  or  put  in  by  one  or  more  op  the  silent 

PARTNERS— The  manager's  debit  entry  will  be  as  before,  "  and  he  credits  him  or  them  to 

whom  he  becomes  indebted  for  his  share,  they  at  the  same  time  debiting  him  for  the  same 

amount.     Their  own  "Adventures  in  Co.,"  they  debit  as  before. 


DOUBLE  ENTRY  RULES. 


mirgTA^^^axTbTp^^^^^  what  accounts  do/s  he  debit  for  it.    12.  If  thJ 

have  aiHo^  aVule  tharcan  n^vPr^^^^^^^^        circumstances,  an  awkward  and  dangerous  principle  to  admit  in  accounts.    Wa 
n^s  l^^created  by  advance,  ifde  to  JL  ..,iXoT:t:Z:'XrX:^r^  ^^ed^ot  HanSr^^ri^S^;  ^esrn 

42 


Eepeat  the  rule  for  conducting 
a  joint  account  as  manager  of  the 
sales 

Examples. 


Quest.  1.   How  does  the   silent 
partner  keep  his  account  ? 

2.  If  you  purchase  on  your  note 
for  your  joint  acct.  with  Wm. 
Hay,  $1000  worth  of  Mdse.? 

3.  Why  not  debit  sales  in  com- 
pany for  the  whole  amount  ? 

4.  What  would  be  your  entry, 
supposing  Hay  gave  you  his 
note  for  the  $500  before  you 
made  the  above  entry  ? 

5.  What  would  be  Hay's  entry 
in  Answer  2  ? 

6.  If  he  gave  Duff  his  note,  as 
in  Answer  4  ? 

7.  What  will  be  your  entry 
where  Hay  puts  $2000  worth 
of  goods  in  your  store  for  sale 
on  joint  acct.  ? 

8.  Why  not  credit  Hay  for  the 
whole  $2000? 

9.  What  will  be  Hay's  entry  in 
Answer  7,  if  he  purchase  the 
goods  on  his  note  ? 

10.  If  you  sell  $2000  worth  of 
the  above  goods,  receiving  in 
payment  cash  $1000,  and  the 
buyer's  note  for  $1000  ? 

11.  If  you  barter  the  remainder 
for  goods  on  your  own  acct.  ? 

12.  The  property  being  all  sold 
for  $3000,  and  the  whole  first 
cost  $2000,  and  your  5  per  ct. 
commission  being  $150,  what 
entry  will  close  sales? 

13.  Explain  how  you  find  the 
amts.  composing  this  entry? 

14.  If  you  receive  from  R.  Morris, 
of  London,  $6000  worth  of 
Mdse.  for  sale  on  acct.  of  him- 
self, J.  Taylor  &  Co.,  of  New 
Orleans,  and  yourself,  upon 
which  you  pay  cash  for  duties 
$1000? 


Rule  XII. — Debit  Sales  in  Co.  for  my  own  share 
only  of  the  first  cost  and  for  the  whole  charges  incurred 
while  in  my  possession,  and  credit  the  same  account  for 
the  total  sales. 

Rule  XIII. — Debit  Adventure  in  Co.  for  ltd  cost, 
and  credit  for  what  it  brings  him  in. 

Ans.  2.  Sundries  to  Bills  Payable .         .  $1000 

1st  Co.  Sales,  for  my  half  .         .     500 

W.  Hay,  for  his  half        .         .         .500 

3.  Because  Hay  becomes  legally  responsible  to  me 
from  this  date  for  $500,  and  must,  by  Rule  III., 
be  made  Dr.  for  the  amount.  It  becomes  his 
property  by  virtue  of  our  agreement,  is  at  his  risk, 
and  if  lost  by  fire  or  perish  by  any  other  means, 
not  in  consequence  of  my  carelessness,  he  will 
have  to  pay  me  this  $500. 

4.  Sundries  to  Bills  Payable .         .         .  1000 
1st  Co.  Sales,  for  my  half .         .         .     500 
Bills  Receivable,  for  Hay's  Note  for 

liishalf 500 

5.  1st  Co.  Adventure,  Dr.      .         .         .     500 

To  Duff         .         .         .         .        . 

6.  1st  Co.  Adventure,  Dr.      .         .         .     500 

To  Bills  Payable    .... 

7.  1st  Co.  Sales,  Dr.      .        .         ',        ,  lOOO 

To  Wm.  Hay  ...         . 

8.  Because  I  do  not  get  in  debt  to  him  for  any  more 
than  my  own  half.  He  is  still  the  owner  of  one- 
half  the  amount,  and  if  the  property  never  sells 
I  shall  never  be  accountable  to  him  for  any  thing 
but  my  own  share. 

9.  Sundries  to  Bills  Payable .         .         .  2000 
1st  Co.  Adventure,  for  his  own  share    1000 
I^^ff)                         for  his  share         .  1000 


500 

500 

1000 


1000 
1000 
1000 

2000 


2000 


1000 

150 

1425 

425 


10.  Sundries  to  1st  Co.  Sales 
Cash 
Bills  Receivable 

11.  Merchandise,  Dr. 

To  1st  Co.  Sales 

12.  1st  Co.  Sales  to  Sundries,  to  close  acct 

To  Commission 
tt   W.  Hay,  for  his  half  N.  P. 
If  Profit  &  Loss,  for  my  half  gain  . 

13.  The  $2000  debit  is  the  difference  between  the  debit 
and  credit  sides  of  the  account  on  the  Ledger  after 
the  sales  are  completed :  from  the  Cr.  side  we  have 
the  total  sales  $3000  —  150  charges  =  $2850' net 
proceeds,  and  $2850 h- 2  =  $1425,  each  share- 
and  $1425  — $1000  (my  half  first  cost)  =  $425* 
my  half  net  gain.*  ' 

14.  2d  Co.  Sales  to  Sundries    .         .        .  3000 

To  R.  Morris,  for  my  i  Invoice  2000 

Cash  paid  duties        .         ,         .  iqqq 


H 


H 


?No^*~''?j**  ^^"'S  *  *Jew  speculation,  we  give  it  a  new  title  •  2d  Co 
them  anTfiadTut'KL*ul"rt"Se\f.'  ''*"''"^°*  ^**  ^'"^^°«  °^  ^^^^«  ^*^^*«  ^^*^°^t  r«P«*ted  study.   He  must  uuOj. 

43 


m 


SET  II.— DOUBLE  ENTRY  RULES. 

RULES  AND  ORAL  EXERCISES. 


SET  II.— DOUBLE  ENTRY  ^OOK-KEEPING. 


« 


1 1 

Ik 

'1. 


I 


It 


Quest.  15.  What  entry  will  Taylor 
&  Co.,  New  Orleans,  make 
when  they  receive  a  copy  of 
the  Invoice? 

16.  What  entry  will  they  make 
when  they  receive  your  acct. 
sales  without  remittance,  their 
i  being  $3300  ? 

17.  What  will  be  Morris's  entry 
when  he  receives  your  copy 
of  the  sales,  supposing  you 
send  with  it  a  remittance  in 
specie  for  the  net  proceeds  ? 

18.  Suppose  William  Hay  sends 
you  $6000  worth  of  Mdse. 
for  sale  on  joint  acct.,  and  you 
make  up  the  joint  property 
to  $10000  by  adding  $4000 
worth  of  tea,  what  will  your 
entry  be  as  manager,  each 
partner's  share  being  $5000? 

19.  What  will  be  Hay's  entry 
in  this  case  ? 

20.  Supposing  the  whole  of  the 
above  speculation  only  pro- 
duce $5000,  leaving  the  acct. 
in  your  Ledger  even  when 
the  sales  are  completed,  what 
entry  will  you  make  to  settle 
the  transaction  with  Hay? 

21.  Suppose  the  goods  had  pro- 
duced $8000,  and  your  charge 
for  commission  is  5  per  ct., 
how  would  the  acct.  close  ? 

22.  Explain  how  you  find  the 
amounts  composing  this  en- 
try? 

23.  Supposing  the  whole  specu- 
lation of  $10000  was  sold  for 
$4000, — the  first  cost  and 
your  commission  being  the 
same  as  before, — how  will  you 
close  the  account? 

24.  Explain  how  the  amounts 
composing  this  entry  are 
found  ? 


2000 


3300 
3300 


4000 

1000 
6000 


Ans.  15.  Shipment  from  London  to  New 

York  in  Co.,  Dr. .         .         .  2000 
To  R.  Morris  for  their  ^  Invoice 

16.  Duff,  Dr 3300 

To  shipment  from  London  to  New 
York  in  Co. 

17.  Cash,  Dr 3300 

To  Shipment  to  New  York  in  Co. 

18.  1st  Co.  Sales,  Dr.  to  Sundries,  my 

half  first  cost       .         .         .  5000 

To  Mdse.    .         .         •      .  • .       • 
//  Wm.  Hay  for  amt.  paid  in  on 
my  acct. 

19.  Sundries  to  Mdse.    .         . 
1st  Co.  Adventure,  for  his  half        .  5000 
Duff,  for  amt.  paid  in  for  him  .         .  1000 

20.  One-half  of  what  the  goods  have  produced  be- 
longs to  Hay,  and  must  be  credited  or  paid  to  him, 
which  only  leaves  me  $2500  for  what  cost  me 
$5000,  I  have  therefore  lost  $2500,  just  the  amt. 
I  owe  Hay,  therefore,  Profit  &  Loss  Dr.  for  my 
loss 2500 

To  W.  Hay,  for  his  half  N.  P.      .  2500 

21.  Sundries  to  Sundries,  $4200. 

1st  Co.  Sales,  for  bal.  of  acct.    .         .  3000 
Profit  &  Loss,  for  my  half  loss  .         .  1200 
To  W.  Hay,  for  his  half  N.  P.      .  3800 

n  Commission,  for  my  commission  400 

22.  The  $3000  bal.  of  acct.  is  the  difference  between 
the  two  sides  of  the  acct.  upon  the  Ledger  after 
all  the  sales  are  posted.  The  total  sales  are  8000  — 
400  charges  =  7600  ^2  =  $3800,  each  share,  and 
my  half  first  cost  5000  —  3800  =  1200,  my  loss. 

23.  Profit  &  Loss  to  Sundries  to  close  1st 

Co.  Sales     .         .         .         .  3100 
To  W.  Hay,  for  his  half  N.  P.     .  1900 

H  1st  Co.  Sales,  for  bal.  of  acct. 

on  the  Ledger     .        .        .  1000 

//  Commission,  for  my  5  per  cent. 

in  total  sales        .         .         .  200 

24.  They  are  found  as  before  by  deducting  the 
charges  from  the  total  sales  (Rule  12) ;  then  the 
difference  between  my  half  net  proceeds  and  my 
half  first  cost  is  gain  or  loss. 

The  learner  should  now  analyze  a  number  of  similar 
entries  and  find  the  correct  amounts  to  form  the  Journal 
entry,  which,  when  correct,  will  always  close  the  ac- 
count on  the  Ledger. 

Learners  can  never  readily  understand  the  closing 
entry  of  either  joint  accounts  or  consignments  without 
having  before  them  the  position  of  the  account  upon 
the  Ledger.  The  closing  entry  must  always  exactly  fill 
up  the  lesser  side  of  the  account  there. — See  Note  1, 
Morris's  Sales,  p.  107,  and  Notes  5  to  12,  p.  220. 

44 


1 

day 

31 

II 

30 

II 

1 

II 

REMARKS  ON  NOTES  AND  BILLS  AND  THE  BILL  BOOK. 

.    ^^S^.,^^^^^°g  0^  *^^se  books  so  perfectly  explains  their  nature,  use  and  manner  of  ent^r- 
mg   iiills  Keceived  and  passed   away,  that  any  farther  explanation  seems  unnecessjiry 
Learners  however,  often  experience  difficulty  in  determining  the  precise  day  upon  which 
notes  and  acceptances  will  fall  due.   We  shall  endeavor,  in  the  following  directions  to  make 
the  matter  understood.  ' 

When  the  term  of  a  Note  is  expressed  in  days,  the  day  of  date  and  the  day  of  maturity 
are  always  counted  as  one,  or,  in  other  Words,  Hhe  day  after  drawing  or  accepting  is  the 
first  day  counted  in  the  time  to  run.     Thus,  a  bill  drawn  or  accepted  on  3Iay  1st  at  20 

,^%Z!^  ^1  ^M^  M.y  24th--including  three  days'  grace.     A  bill  drawn  or  accepted  on 
the  29th  of  April,  at  60  days,  has  to  run —      »  ^ 

In  April 

In  May 

In  June  

In  July 

63  days.     ^D^e.  July  1st. 

Again,  a  Bill  drawn  or  accepted  30th  April,  at  90  days,  has  to  run— 

J^^^ay 31  days. 

I°J^?e 30     ^ 

J^J^^y 31  /. 

In  August 1     „ 

93  days.     "^J^mq^  Aug.  1st. 

It  will  be  observed  in  the  last  example  that  no  time  is  allowed  for  April  althou-h  the 
da  e  IS  on  the  last  day  of  that  month ;  as,  according  to  the  rule  laid  dowV  aborthe  ^ 
following  the  date  is  the  first  day  counted  in  the  time  to  run  '         ^ 

When  the  last  day  of  grace  falls  upon  Sunday,  the  note  must  be  paid  the  preceding 

thSoks.  '''''  ''  °'''  '^"^^"'  ^^"^^^"y  ^^'^'^  ^^^«  -  --^d-S  '^^^  b^ls  upon 

When  the  term  of  a  note  or  bill  is  expressed  in  months,  'calendar  months  are  alwavs 

understood  and  it  becomes  due  in  the  last  month  of  its  term,  upon  X  dafcorrespoS 

of  Merchants  and  Bankers  to  extend  the  time  of  payment  for  any  deficiency  in  the  le^^h 

months^lM^^^^^^  ^'^'i^'  "°^  ""f  ^^^  "«*«  ^'-^^  on  the  30th  M^rch,  also  at  three 

rrmittinT  the  t  J  n  •  t'  '^'^'  ''^'  ^^^r^'''  ^^  ^^^^^     '  ^he  custom  of  merchants  not 
permitting  the  term  of  the  note  to  extend  beyond  the  end  of  June,  except  for  the  days  of 

The  following  statements  will  disclose  to  persons  operating  extensively  in  notes  and  ^ 
re^Ttha^broTdT '?  ''  ''''  matter'when  iaw"ac"     B^" 


45 


i 


■t 


Ml 


SET  II.— DOUBLE  EKTEY  BILL  BOOKS. 

It  will  also  appear  that  by  obtaining  one  day's  advance  in  the  date,  two,  three,  and  some- 
times four  days  are  gained  in  the  time  of  payment.  For  example,  a  note  or  bill  drawn  or 
accepted  on  the  28th  February,  at  six  months,  is  due  August  31st;  but  if  dated  on  the  1st 
March,  only  one  day  later,  it  would  not  be  due  until  the  4th  September,  thus  extending  the 
term  of  payment  four  days  for  one  day's  difference  in  the  date ;  and  this  difference  in  the 
date  is  frequently  a  matter  of  little  consequence  to  the  payee  of  the  bill. 

In  all  our  computations  in  reference  to  Notes  and  Bills,  three  days'  grace  are  in  every 
instance  included. 

In  the  following  instances,  one  day's  advance  in  the  date  will  give  the  day  of  payment 
three  and  four  days  later.*    Notes  drawn  or  Bills  accepted  February  28th,* 


At    1  n 

aonth, 

are  di 

lie  Mar. 

31,  but  if  d 

At    2  months. 

II 

May 

1,            » 

At    3 

II 

II 

May 

31,            w 

At    4 

n 

M 

July 

1,            n 

At    5 

II 

II 

July 

31,                  9 

At    6 

n 

II 

Aug. 

31,            w 

At    7 

II 

II 

Oct. 

\            ' 

At    8 

II 

II 

Oct. 

31,                  9 

At    9 

H 

II 

Dec. 

1,            » 

At  10 

n 

II 

Dec. 

31,                  M 

At  11 

II 

II 

Jan'y 

31,            If 

II 


II 


n 
II 


May 

June 

July 

Aug. 

Sept. 

Oct. 

Nov. 

Dec. 

Jan'y  4. 

Feb.     4. 


4. 
4. 
4. 
4. 
4. 
4. 
4. 
4. 


One  day's  advance  in  the  date  will  in  the  following  cases  give  'two  additional  days  in  the 
time  of  payment.     Notes  drawn  or  bills  accepted  April  30th, 

At    1  month,  are  due  June  2,  but  if  dated  1st  May  will  not  become  due  till  June  4. 


At    3  months, 

// 

Aug.  2, 

// 

11 

II 

Aug.    4. 

At    4       // 

// 

Sept.  2, 

II 

It 

Sept.    4. 

At    6       // 

// 

Nov.    2, 

It 

It 

Nov.    4. 

At    8       n 

II 

Jan'y  2, 

II 

If 

Jan'y  4. 

At    9       // 

II 

Feb.    2, 

If 

It 

Feb.     4. 

At  11       // 

II 

April  2, 

II 

M 

April  4. 

The  above  illustrations  will  serve  to  disclose  the  principle  upon  which  we  desire  to  fix  the 
attention  of  our  students  and  all  commercial  persons  having  any  thing  to  do  with  bills.  An 
error  of  one  day  in  recording  the  maturity  of  a  note  or  acceptance  may  cause  the  holder  to 
lose  his  remedy  against  the  endorsers ;  and  perhaps  cause  him  to  lose  the  note  altogether. 


1.  Notes  drawn  or  Bills  accepted  on  the  last  day  of  February,  with  a  running  time,  in  months,  will  advance  the  day  of  pay- 
ment three  and  four  days,  by  dating  forward  one  day. 

2.  Notes  drawn  or  Bills  accepted  on  the  last  day  of  a  thirty-day  month,  with  a  running  time  in  months,  expiring  in  a  thirtj-- 
one  day  month,  will  advance  the  day  of  payment  two  days,  by  dating  forward  one  day. 

*  Our  calculations  are  all  made  for  ordinary  years.    When  f  ebruary  intervenes,  leap-year  makes  a  day's  difference. 

46 


SET  IL—DOUBLE  ENTKY  BILL  BOOKS. 

We  have  next  to  point  out  the  other  inconsistency  we  have  alluded  to,  viz.  those  instances 
in  which  several  notes  or  acceptances,  dated  or  accepted  on  different  days  and  having  tlie 
same  time  to  run,  in  months,  will  fall  due  upon  the  same  day. 


Suppose  you  give  four  notes  dated — 

August  28,  at  6  months, 
August  29,  at  6  months, 
August  30,  at  6  months, 
August  31,  at  6  months. 

You  will  find  these  notes,  although  of  different  dates  and  all  of  the  same  runnin<y  time 
will  become  due  on  the  same  day.^  ^         ' 


Again,  suppose  you  give  two  notes  dated — 

March  30,  at  3  months, 
March  31,  at  3  months. 

Both  these  notes  will  be  presented  to  you  for  payment  on  the  same  day.' 


The  author  trusts  that  the  importance  of  the  subject  will  be  a  sufficient  apoloffv  for  the 
length  of  this  article.     With  the  exception  of  Bankers,  the  greater  part  of  business  men 
have  no  definite  principle  for  determining  the  precise  day  upon  which  notes  and  bUls  will 
in  some  cases,  become  due. 


m«;f?f*®'*?*^''  °'"-  ^"J-*  accepted  on  the  last  three  days  of  thirty-day  months,  and  the  last  four  dors  of  thirtr-one  <1«« 
2  NnVr?  *  ^''^'^^Stime,  m  months,  expiring  in  February,  will  all  become  due  on  the  same  da?        ^       tWrty^ne  day 

int  X%'S  mVnth^';^rbXfi^^^^^^^  ^^^-^"^  '^y  — *^«'  ^'"^  ^  --^°«  time,  in  month.,  ^^'^ 

47 


BILLS 


1>ATK. 


i86e. 
Pec. 


1867 

Jan. 


so. 


drawer's  txamx. 


Feb. 


'I 
M 


*'! 


Mar. 


1^ 


"i 


■    t       •  1 


II 

!! 


April 
May 


June 


1 
21      2 

I      'I  3 
10      4 

19      5 

l30   ,  6 

Bl      7 

8 

9  ,   9 

12  HlO 

25    11 

112 

28  '  13 

12    14 

15 

16 

17 

18 

19 

20 

21 

122 

123 

24 


\ 


7 
0 
6 
3 

8 


8 

B5 
'Z6 


i8€6. 

Dee. 

1867. 


tl 


James  Day, 
0.  Banks, 
C.  Murray, 
Thomas  Edwards, 
James  Carter, 
William  Hay, 
W.  Morris, 
J.  Warden, 
William  Park, 
James  Carter, 
J.  Bowline, 
Baker  &  Fox, 
Warden  &  Bell, 
J.  Taylor  &  Co., 
W.  Wallace, 
Joel  Post, 
James  Day, 
H.  Parnell, 
James  Walker, 
Warden  &  Bell, 
Austin  &  Co., 
W.  Wallace, 
Joel  Post, 
(xeo.  Barron, 
William  Ha , 


ON  WHOM  OR  IN  WHOSE 
VATOR  DRAWN. 


ON  WHAT  ACCOUNT. 


Totx  TO  mini 


Favor  of  Myself, 


» 
u 
n 
w 
w 
n 


Warden  &  Bell, 

William  Hay, 

Myself, 
bn  R.  Morris, 
■    Myself, 

Barclay,  Hope, 
Favor  of  Myself, 


Merchandise, 
Cash  Lent, 
!      Do. 
Merchandise, 
On  account. 
Balance  of  account. 
My  note, 

Do., 
Morris's  sales, 
An  old  note, 
Cash  Lent, 
Cash, 

My  Bill  on  London, 
R.  Morris's  sales, 
Estate  of  A.  Lenox, 


k 


// 


Warden  &  Bell, 
Bill  on  Landis, 
Favor  of  Myself, 


// 


Bill  on  Baring, 
I    My  favor, 


enewing  an  old  note, 
Estate  of  A.  Lenox, 
Money  Lent, 
2d  Co.  Sales, 

Do. 
An  old  note  for  A.  Lenox, 
For  Cash,  &c.. 
Refined  Sugars, 
I  Hay's  accomiii' 


3  C.  Murray, 


Favor  of  Myself,  Cash  Lent, 


8  months. 
ll  month. 

0  months. 

0  days. 

0  days. 

0  days. 

feO  days. 
^0  days. 
4  months. 

1  month. 
Bottomry. 
60  days'  s'gt 

1  month. 
60  days'  s'gt 

2  months. 
o  months. 
60  days. 
60  days. 
6  months. 
80  days'  s'gt 
60  days. 

3  months. 
60  days'  s'gt 
iiO  days. 

'ij  moiitii- 


9  months. 


May     18  121  Austin  &  Co. 

22  W.  Wallace, 

June    18  '23  Joel  Post, 


25 


24  Geo.  Barron,  My  favor, 


Exchange  on  Baring  Cash,  &c., 


2d  Co.  Sales,  60  days. 

Old  note  to  A.  Lenox  est.  3  months. 


Refined  Sugars, 


60  days'  s'gt 
30  days. 


1.  When  a  note  or  acceptance  is  received,  it  is  entered,  with  all  the  particulars,  in  the  left-hand  amount  colnmn. 

2.  When  it  is  passed  away,  the  date,  when  and  how  it  is  disposed  of,  are  inserted  in  the  columns  indicated,  and  the  amount  is  ex- 

tended into  the  right-hand  amount  column. 

3.  Note  No.  4  above  is  paid  in  two  instalments.  Such  entries  may  occasionally  be  made  here ;  but  it  will  be  found  more  conve- 
nient in  practice,  when  a  note  is  not  paid  at  maturity,  to  'charge  it  in  account  to  the  party  we  look  to  for  payment  at  the 
same  time  writing  it  out  of  this  book  as  we  have  done  above  with  No.  10.— See  notes  3  and  4,  p.  62.  Before  we  balance  the 
bill  account  on  the  Ledger,  *  we  must  see  that  the  difference  between  the  two  sides  of  it,  and  the  difference  between  the  two 
Bides  of  this  book,  agree.    The  above  notes  "  carried  down"  6  are  the  notes  in  hand  at  the  time  of  balancing 

The  left-hand  amount  column  is  footed  and  noted  "  forward"  when  it  is  filled,  the  amount  appearing  in  the  head  of  the  same 
column  on  the  next  page  "bro't  forward."  The  righ^hand  amount  column  cannot  be  carried  forward  until  the  spaces  are 
all  filled  at  the  time  of  balancing.  ^ 

*  All  notes  which  you  endorse  for  accommodatioii  may  be  entered  In  this  manner  in  red  ink;  but  they  do  not  pass  through  th« 


4. 

5. 
6. 


books. 


48 


KECEIVABLE. 


WHIN  DUK. 


1_ 

2 

8 

L7 

4 

6     6     7     8 

9     10    11    12 

1    "   i 

24 

12 

1 

24 

11 

3 

;                       1 

'     : 

5 
5 

loi 


31 


12 


14 
15 

19 
22 


15 


20 


21 


28 


24 


21 


21 


28 


AMOUNT. 


600 
1000 
1500 
3000 
600 
1515  75 
800 
600 
2100 
300 
2000 
4444 
2011 
4500 
1200 
500 
400 
1340 
2063 
7000 
3000 
1200 
2000 
980 
I,  1000^   : 

45554  19 

1500 

3000 

1200 

2000 

980 


WHEN 


AND  HOW  DISPOSED  OF. 


1867. 


Mar    17 
Jan.    24 

J  mm  .*J0 

Feb.   12 


Feb. 

12 

Apr. 

22 

Feb. 

6 

Jan. 

31 

June 

12 

Mar. 

16 

Mar. 

20 

Feb. 

28 

Apr. 

20 

Apr. 

5 

May 

18 

June  18 

May 

31 

31 

June  18 

May 

25 

Ree'd  6100,  Ren'd  $400, 
Rec'd  in  Cash  and  Mer., 

Cash  $2000,  Mdse.  81000 
Ren'd  6300,  Lost  §300, 
Rec'd  in  Cash, 
Discounted  in  City  Bk., 
Discounted  in  City  Bk., 
Rec'd  in  Cash, 
Charged  to  W.  Hay, 
Collected  by  R.  Morris, 
Sold  to  R.  Irvin  &  Co., 
Rec'd  in  Cash, 
Passed  to  P.  Nevius, 
Renewed  for, 
Rec'd  in  Bill  on  Lond.. 
Ch'd  to  Profit  &  Loss, 
Ch'd  to  Estate  of  Lenox, 
Rec'd  in  Cash  and  Mer., 
Sold  to  C.  Hartwell, 


AvoinrT. 


500 
1000 

3000 

600 
1515  75 

800 

600 
2100 

300 
2000 

4444  44 
2011 
4500 
1200 

500 

400 
1340 
2063 
7000 


j  June  26  Endorsed  &ret'd  to  Hay,     1000 

45554  19 


i  n^Z  ^V^  •!°.*®'"  *  °^*«  °^  acceptance  when  received  ? 
2.  How  when  it  is  passed  away  ?  t^v^eivea  i 

6.  How  18  this  book  continued  from  one  page  to  another? 

*  If  you  are  re-entering  these  notes  upon  a  new  page,  "carry  foxward"  will  be  the  proper  expression. 

49 


ii'ii 


r' 


m 


'<\ 


BILLS 


SATS  OV 

ACCEPTANCE. 


NO. 


UEAWER'S  NAJ«. 


1866. 

Nov. 

1867. 

Jan. 


Feb. 


Mar. 
Apr. 


lii 


ii'  .  '  ) 


13 
15 

n 


4 


f 


0 


3Iay 
June 


1887. 

Feb. 

Mar. 
Apr. 

June 


|20 

Bl 

18 


IN  WHOSE  FAVOR. 


14      1  Myself, 


A..  Stuart  &  Co., 


2  Taylor  on  Myself, 

3  Myself, 

4  a 

5  If 

6  » 

7  f 

8  If 

9  u 

10  n 

11  IWorris,  on  Myself, 

12  Myself, 
,13       // 
114'     n 

15  Taylor,  on  Sydney, 

16  Myself, 
117      II 

18  i      n 

19  'I 


k 


yan  &  Dale, 
^V.  Bayard  &  Co., 
papt.  W.  Rivers, 
|W.  Morris, 
J.  Warden, 
U.  States, 


K 
If 


|R.  Banks, 
JVV.  Hay, 
Morris, 


fe.  Coates, 

Walker, 

States, 
Wm.  Hay, 
tV\^arden  &  Bell, 


'4 
10 
20 
18 


8  Myself, 

iiOj    n 

12  n 

16  // 

17  " 
VJ 


p.  States, 


// 


// 


W.  Hay, 
J.  Walker, 
U.  States. 
Warden  &  Bell, 


ON  'WHAT  ACCOUNT. 


Merchandise, 


nXX  TO  KOH. 


// 


5hip  Hudson, 

is  Note, 

is  Note, 

erehandise, 
I         .// 
!dorris's  Goods, 

// 
R.  Morris, 

[nsurance  of  ship  Roscoe, 
■Shipment  to  Liverpool, 
R.  Morris's  Ship't  to  Bost. 
lonor  of  J.  Taylor  &  Co., 

nsurance  2d  Co.  Ship't, 
duties  2d  Co.  Sales, 
Insurance  for  R.  Morris, 
Purchase  of  Floiur, 


60  days. 

0  days, 
month. 
^  months. 
30  days. 
50  days. 
3  months. 

5  months. 
B  months. 
IB  months. 
ilO  days'  s'gt 
^  months. 
30  days. 

SO  days. 
JLO  days. 

6  months. 
6  months. 
2  months. 
60  days. 


VIerchandise,  B  months. 

piorris's  Goods,  6  months. 

'nsurance  of  ship  Roscoe,  4  months. 

nsurance  2d  Co.  Ship't,    8  months. 

uties  2d  Co.  Sales,  6  months. 

Purchase  of  Flour,  60  days. 


J\V'«— The  directions  respecting  the  Bills  Receivable  Book  apply  in  all  respects  to  this  book.  ,  „„^  „,  ua 

The  not^"SedTown'' are  the  notes  wo  have  out  unpaid,  and,  like  the  other  Bill  Book,  must  agree  with  the  balance  or  ita 
representative  in  the  Ledger,  at  the  time  of  balancing. 


PAYABLE. 


WHBN  0U£. 


1     2 


16 

16 


18 


3 


L8 


5 


6     7 


4 

4 


8 


9 


28 


10 


11    12 


18 


3 

20 


4 
4 


AMOUNT. 


23 


0 


300 

1000 
1600 
8000 

800 

600 
111111 

mill 
nil  11 
nil  11 

25001 

400 

16145 
4125 

601 

145 
3000  i 

112  80  ! 
1160 


WHEN 


1867. 


ANB  HOW   PAID. 


Jan. 


a6 


Feb.   !18 


Apr. 
Mar. 


122 
4 


May 

June 
May 
June 
Mar. 

JuneiSO 
May  I  8 


4 

30 

4 

30 

5 


:^65  fi4 


nil  n 
iiiui 

400! 

145  1 
3000  ! 
1160 


Apr 

June 
June 
June 
June 


2S 

30 
30 
US 
30 


Pd.  City  Bank, 

If  u 

Pd.  in  Cash  and  Mdse., 
Pd.  in  Cash  and  Mdse., 
Pd.  in  City  Bank, 
Pd.  in  Merchants'  Bk., 
Pd.  the  Custom  House. 

1 1  Carried  down, 
Pd.  the  Custom  House, 
Carried  down, 
Pd.  in  Mdse., 

I  Carried  down, 

!Pd.  in  Cash, 
Do. 

iPd.  in  Cash, 
CaiTicu  aown. 
Do      Do 

Pd.  Insurance  Co., 
Carried  down, 


AJfOCXT. 


300 


$4865  44 


51 


50 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 


I     p 

h 


THE  CASH  BOOK. 


.  i 


CONCLUDING  REMARKS  ON  THE  BILL  BOOKS. 

1.  All  practical  accountants  who  have  seen  the  principle  upon  which  I  have  kept  the 
Bill  Books  have  given  it  their  unqualified  approbation.  In  the  operations  of  some  houses, 
the  Bill  account  is  nearly  as  heavy  and  voluminous  as  the  Cash  account,  and  there  is  no 
way  in  which  accuracy  can  be  so  easily  preserved  or  errors  so  readily  found  as  upon  the 
principle  of  balancing  these  books  like  the  Cash  Book.  In  a  business  where  any  consider- 
able number  of  bills  or  notes  are  received  or  given,  this  precaution  appears  to  me  almost 
indispensable  for  maintaining  harmony  between  these  books  and  their  representatives  in 
the  Ledger. 

2.  Although  I  have  here  only  balanced  them  once, — at  the  time  of  closing  the  Ledger, 
— ^yet,  in  a  business  of  any  magnitude,  it  will  be  advisable  to  do  so  much  oftener,  at  the 
same  time  balancing  their  representatives  in  the  Ledger,  or  at  least  seeing  that  they  con- 
form to  these  books,  and  also  to  the  amount  of  Bills  and  acceptances  in  hand.  Any  dis- 
crepancy in  this  particular  is  a  conclusive  proof  of  error  existing  somewhere,  which  must 
be  found  out  and  rectified  before  you  go  farther.  You  will  notice  that  those  notes  which 
have  been  renewed  at  the  face — see  Wallace's  note,  No.  15 — are  not  passed  into  the  Ledger, 
neither  are  accommodation  notes,  such  as  that  of  William  Hay's  on  the  26th  June.  You 
will  not  therefore  expect  the  account  in  the  Ledger  to  add  up  the  same  as  this  Book  •  but 
if  every  thing  is  correct  it  will  conform  to  it  in  the  balance.  Cross  accommodation  bills, 
like  Bills  Receivable  No.  7  and  8,  where  you  have  given  a  consideration  for  them — your 
own  notes — must  of  course  appear  on  your  Bill  Book  like  any  other  note. 

Another  species  of  accommodation  is  when  y.ou  grant  your  signature  as  security  upon  a 
note  or  acceptance  without  any  consideration,  as  in  the  case  of  Hay's  note — see  Bills  Re- 
ceivable, June  26.  I  have  recommended  the  entry  of  all  such  notes  with  their  particulars 
and  amounts  in  Red  Ink.  Such  a  practice  may  make  the  Bill  Book  a  useful  monitor  to 
those  who  do  much  of  this  kind  of  business. 

3.  I  have  before  given  directions — Note  3,  p.  49 — respecting  the  payment  of  notes  by 
instalments.  The  prevailing  practice  is  to  credit  the  Bill  account  with  every  instalment, 
however  trifling,  endorsing  it  at  the  same  time  upon  the  note.  Notwithstanding  its  long 
established  general  usage,  this  practice  is  often  attended  with  great  inconvenience  to  the 
Book-keeper.  A  more  fruitful  source  of  confusion  could  hardly  be  devised.  After  getting 
u  number  of  these  partial  payments  upon  different  notes  posted  to  the  account,  in  any 
attempt  to  trace  out  errors  afterwards,  it  will  be  found  a  perfect  labyrinth. 

4.  When  a  note  is  overdue,  it  ought  either  to  be  renewed  or  charged  to  the  promisor  in 
book  account,  and  as  he  makes  payments  upon  it  pass  them  to  his  credit.  Those  who  have 
been  pursuing  a  different  course  will  risk  nothing  by  giving  what  I  here  suggest  a  trial. 


52 


INTRODUCTORY    REMARKS. 

This  book  ^  is  kept  for  the  purpose  of  ascertaining  every  evening,  or  as  often  as  is  neces- 
sary, that  all  money  received  and  paid  has  been  kept  account  of. 

^  This  is  done  by  debiting  this  account  for  ^all  money  received,  hence  we  find  by  the  Dr. 
side  the  total  amount  received.  When  » money  is  paid  out  we  credit  this  account,  and 
thereby  find  by  the  credit  side  the  total  amount  paid  away.  *And  the  difference  between 
the  amount  paid  away  and  the  amount  received  must  be  the  balance  in  hand.  When  the 
money  in  hand  is  counted  it  must  agree  with  Hhe  balance  as  shown  by  this  book.  Any 
difference  is  conclusive  proof  of  error,  which  should  be  immediately  sought  out  and  an 
entry  made  to  rectify  it. 

All  cash  transactions  are  generally  first  entered  ^upon  this  book,  and  afterwards  trans- 
ferred to  the  Day  Book,  when  Hhey  are  marked  off  this  book  upon  the  left  hand  side  of  the 
inoney  column  thus  |/.  But  there  is  no  objection  to  making  the  entry  occasionally  first  on 
the  Day  Book  and  the  collateral  entry  afterwards  on  this  book. 

As  the  Cash  Book  is  generally  referred  to  ^as  the  book  of  original  entry  for  all  such 
transactions  as  are  entered  upon  it,  great  care  is  necessary  in  making  these  entries.  »Tbey 
should  be  made  in  such  a  manner  as  will  enable  any  one  afterwards  to  determine  what 
aQcount  was  intended  to  be  debited  or  credited  for  the  money  paid  or  received.  For  this 
purpose  accountants  adopt  the  following  Rule  : 

When  money  is  received,  ^»  write  the  name  of  the  account  to  be  credited  for  it,  next  the 
date  column  on  the  left  side,— the  words  of  explanation  on  the  same  line  a  little  to  the 
right. 

When  money  is  paid  away,  "write  the  name  of  the  account  to  be  debited  for  it,  next 
the  date  column  on  the  right  side,— the  words  of  explanation  on  the  same  line  a  little  to  the 
right. 

The  Ledger  titles  are  by  this  means  kept  in  a  perpendicular  column,  separated  by  a  slight 
space  from  the  explanatory  words— refer  to  our  cash  book  and  see.  By  this  arrangement 
no  doubt  can  afterwards  arise  as  to  what  accounts  were  intended  to  be  debited  or  credited. 
And  It  adds  much  to  the  appearance  of  the  book  to  begin  these  words  of  explanation  all 
upon  a  perpendicular  line,  either  by  a  fold  in  the  paper  or  a  pencil  line.  "Every  thing 
except  the  dates  and  names  of  accounts  must  be  kept  to  the  right  of  this  line. 

Nothing  shows  a  man's  ignorance  of  accounts  more  effectually  than  beginning  his  entries 
here  with  the  title  of  the  book  -  To  Cash"  or  '^  By  Cash.''  Nothing  but  cash  is  entered 
here,  and  that  title  is  never  written  in  the  book  except  in  the  heading  of  it. 

The  Bank  account,  check-book,  &c.,  are  exemplified  in  the  second  part  of  this  work. 


Teachee's  Examination.— 1.  For  what  purpose  is  the  Cash  Book  kept? 

2.  What  is  placed  to  the  Dr.  side  ? 

3.  What  to  the  credit  side? 

4.  How  do  we  ascertain  the  balance  in  hand? 

5.  What  must  the  money  in  hand  agree  with  ? 

6.  Where  are  all  cash  transactions  generally  first  entered? 

7.  ^\hat  is  done  with  them  when  they  are  entered  in  the  Day  Book' 

8.  For  what  [.iirpose  is  the  Cash  Book  generally  referred  to? 

9.  How  should  entries  be  made  on  this  book  ? 
^                                  10.  How  is  money  received  to  be  entered? 

11.  How  money  paid  ? 

lli.  What  is  kept  to  the  right  of  the  perpendicular  line  spoken  of? 

58 


II 

il 


Dr. 


1867. 

Jan. 


Feb. 


Alar. 


I 


Apr. 


lii 


;  t; 


1 

3 
16 
18 
24 
30 
31 


6 
12 
25 


28 


1 
2 
5 

12 

17 

28 


20 


C^SH 


To  Stock 

//  Mdse. 

//  James  Carter 

//  House  44  Broadway 

tf  Bills  Receivable 

//  Wm.  Hay 

If  Bills  Payable 


For  Bal.  on  hand,  per  Ledger  A,  fol.  2 
Rec'd  for  sale  to  A.  Stuart  &  Co. 
Rec'd  amount  of  his  %  in  full 
Rec'd  of  Carver  a  quarter's  rent 
Rec'd  of  Banks  on  %  of  his  note 
Rec'd  on  % 
Rec'd  n/p.  of  Warden's  note  discounted 


10906.70  5ft 
6680. 


4226.70 


5   To  Morris's  Sales 


»  Bills  Receivable 

//  //             tf 

n  R.  Morris 

//  Commission 

//  Profit  &  Loss 

//  Bills  Receivable 

n  Profit  &  Loss 

n  Sundries 


Bal.  bro't  down 

Rec'd  for  sale  to  J.  Lorillard 

Rec'd  n/p.  of  Morris's  note  discounted 

Rec'd  of  T.  Edwards  on  his  note 

Rec'd  n/p.  of  draft  on  Barclay 

Rec'd  for  collecting  same 

Rec'd  a  purse  found  in  the  Park 

Rec'd  for  Baker  &  Fox's  Bill       84444.44 

Rec'd  8^  per  ct.  prem.  on  same         377.78 

Rec'd  of  Warden  on  my  Bill 


6462.70 


To  Wm.  Hay 
n   Ship  Hudson 
n   Mdse. 

Ship  Roscoe  and  Owners 

N.  Y.  Insurance  Office 

Estate  A.  Lenox 

Bills  Receivable 

Profit  &  Loss 

Mdse. 


Bal.  in  hand  bro't  down 

Rec'd  on  1st  Co.  account 

Rec'd  for  freirh'^ 

Rec'd  of  R.  Banks 

Rec'd  for  freight  and  passages 

Rec'd  in  full 

Rec'd  deposit  in  Manhattan  Bank 

Rec'd  on  J.  Day's  note 

Rec'd  interest  on  same 

Rec'd  of  Wm.  Hay  bal.  of  Invoice 


34^1.90 
13020. 


11641.90 


To  Bills  Receivable 
n  Profit  L^  Loss 


Bal.  bro't  down 

Rec'd  amount  of  Warden  &  Bell's  note 

Rec'd  20  days'  interest  on  same 


Forward 


7300 

300 

560 

150 

500 
1500 

596  i  70 


10906 '  70 


4226  70 
360  I 


796 

2000 

1995 

5 

400 

4822 
2810 


40 


17415 


22 
16 


4K 


6462  70 

2500 

1850 

255 
1800 
3690 
7500 

100 
4  20 

500 


24661  90 


11641 

2011 

6 


13659 


90 
70 


60 


♦  Note. — ^The  learner  should  place  these  figures  in  hia  manuscript  in  pencil. 

64 


^OOOUNT. 


1887 

Jan. 


By  Mdse. 
»   Bills  Payable 
»      II  II 

II   House  44  Broadway 
II   Ship  Hudson 
//  // 


Paid  M.  Hunter  &  Co.  for  Inv.  of  Flour 
Pd.  my  note  to  A.  Stuart  &  Co. 
Pd.  my  acceptance  for  Taylor  &  Co. 
Pd.  J.  Carpenter's  Bill  for  repairs  . 
Pd.  Capt.  Rivers  on  %  of  purchase  money 
Pd.  disbursements 

Bal.  to  n/a.  ^^ 


Feb, 


i    By  Mdse. 

1      II  Morris's  Sales 

5 


3Iar 


i3 


1? 


20 
25 


II  II 

II  M 

Shipm't  to  New  Orleans 


n 
II 

II 

II  J.  Taylor  &  Co. 
//  House  in  Broadway 
//  Profit  &  Loss 
//  R.  Morris 
II  Bills  Payable 
//  Morris's  Sales 
//  Bills  Receivable 
//      //  // 

//  Profit  &  Loss 


Pd.  freight,  per  "Herald" 
Pd.       //  //  // 

Pd.  Cooperage,  &c.  on  Wines 
Pd.  freight  of  Wine  to  New  Orleans 
Pd.  freight,  per  "Jersey" 
Pd.       //         //  // 

Pd.  Insurance  $200,  Policy  $1 
Pd.  Insurance  on  Mdse.  in  Store 
Pd.  on  %  of  his  Bill 
Pd.  on  my  note  to  W.  Bayard 
Pd.  R.  Banks  for  overgauged  Wine 
Pd.  J.  Bowline  on  Bottomry  Bond 
Pd.  for  Baker  &  Fox's  Bill  4444.44'! 

Pd.  8  per  cent.  Prem.  on  same        355.56 
Bal.  to  n/a. 


Cr. 


1800 

300 
1000 

280 
2100 

1200 

41^ 

10906    70 


10952.78 


85 
167 

2S 

33 

11 

201 

181 

3400 

•20 

211 

2000 

4800 


78 


3   By  Ship  Roscoe,  my  J  Pd. 


12 
16 
17 

25 
31 


Ship  Roscoe  and  Owners  Pd. 

Bills  Payable  Pd. 

"         "  Pd! 

Mdse.  Pd. 

Estate  A.  Lenox  Pd. 

"            "  Pd! 

House  49  Cedar  Street  Pd. 

1st  Co.  Sales  Pd. 

Charlotte  Lenox  Pd. 

Robert  Lenox  Pd. 


Capt.  Manly  bal.  of  purchase 
disbursements 
my  note  favor  W.  Morris 
'I      11        II     J.  Warden 
freight  of  Cotton  from  New  Orleans 
note  in  the  Manhattan  Bank 
for  Law  Expenses 
Insurance  and  Policy 
my  half  Invoice  of  Cotton 
her  on  %  of  Legacy 
him  on  %  of  Legacy 
Bal.  t«»  u/a.  18,020 


17415    48 


Apr. 


1 
5 

10 


15 


By  Bills  Receivable  Pd.  J.  Walker  in  loan  on  his  note 

//  bhipm  t  to  Liverpool  Pd.  Shipping  charges 

"  ^•Morris  Pd.  charges  on  shipment  to  Boston 

//  John  Taylor  &  Co.  Pd.  their  draft  on  S.  Wood  &  Co.  protested 

II  Sundries  Pd.  charges  on  2d  Co.  shipm't  to  London 
//  1st  Co.  shipm't  to  Boston  Pd.  Shipping  charges 

//  Sundries  Pd.  charges  on  1st  Co.  shipm't  to  Liverpool 

Forward 


4065 


55 


Ill 


;'i 


ri! 


'I   ' 


i 


t      Dr. 


1867. 


Apr.    22    To  Bills  Receivable 
//   Profit  &  Loss 


May 


8 
13 

18 

25 


To  House  in  Cedar  Street 
//   City  Bauk  Stock 

Merchant's     // 

House  44  Broadway 

Ship  Hudson 

Ship  Roscoe  and  Owners 

Merchants^  Bank  Stock 

R.  Morris 

Mdse. 

2d  Co.  Sales 


// 


Profit  &  Loss 
Bills  Receivable 
Profit  &  Loss 


June 


12 
18 


To  Bills  Receivable 
//       //  » 

n   R.  Morris 


O^SH 

60 

Bro't  forward 

13659 

Rec'd  amount  of  Wm.  Hay's  note 

1515 

75 

Rec'd  interest  on  same 

15190.40 

8058.60 

5 

05 

7121.80 

.— 

1 

1 

15180 

40 

Bal.  bro't  down 

7121 

• 
80 

Rec'd  a  quarter's  rent 

300 

Rec'd  Dividend 

500 

Rec*d         // 

250 

Rec'd  Rent 

150 

• 

Rec'd  Freight 

3500 

Rec'd  freic:ht  and  passage  money 

\ 

4200 

Rec'd  of  Finlay  &  Co.  on  %  of  sale 

500 

Rec'd  of  Walker  bal.  on  my  Bill  of  Exch. 

4200 

Rec'd  of  J.  Walker  h  3d  Co.  Adventure 

1500 

, 

Rec'd  on  %  of  sale  to  Warden  &  Bell 

1640 

Rec'd  of  Austin  &  Co.  on  Sales  at  Auction 

560 

Rec'd  of  W.  Wallace,  for  interest 

18 

90 

Rec'd  for  Warden  &  Co.'s  draft  on  Landis    ' 

7000 

Rec'd  1  per  ct.  prem.  on  the  same 

31510.70 
2724.92 

70 



28785.78 

31510 

70 
78 

Bal  bro't  down 

'  28785 

Rec'd  of  Warden  &  Bell,  for  their  note 

2100 

Rec'd  of  J.  Walker  bal.  due  on  note 

563 

Rec'd  Insurance  for  loss  per  "Columbia" 

5452 

70 

36901.48 

28010.48 

^^ 

8891. 

36901 

48 

Bal.  bro't  down 

«891 

DIRECTIONS    FOR    RULINO. 

1.  What  are  the  lines  called  footing  lines? 

2.  How  are  they  drawn  under  the  longest  column  ? 

3.  How  are  they  drawn  upon  the  other  side,  where  there  is  a  blank  space  in  the  money  column  ? 

4.  What  are  the  closing  lines,  and  what  is  the  use  of  them  ? 

5.  Where  are  they  drawn? 

6.  How  far  do  you  bring  the  balance  below  the  closing  line,  and  what  must  this  balance  agree 

with? 
The  author  has  been  thus  precise  in  his  directions  in  this  matter,  hoping  thereby  to  inspire 
his  learners  with  an  early  taste  for  neatness  and  uniformity  in  a  matter  which  contributes  so 
much  to  the  appearance  of  their  books,  and  which  is  of  more  importance  in  preserving  accu- 
racy and  order  than  many  persons  imagine. 

The  directions  here  given  apply  to  the  Ledger,  and  all  other  books  upon  which  balances  are 
struck. 

56 


A.OCOUN'T, 


Or. 


1867.  ;         j 

I  I 

Apr.    20   By  2d  Co.  Sales 
22;    //   Sundries 
23;    //  Bills  Pciyable 


Bro't  forward 

Paid  Freight,  &c.  per  ''Vixen" 

Pd.  on  my  note  to  Capt.  Rivers 

Pd.  my  acceptance  for  honor  of  Taylor  &  Co. 


8058.60 


May 


4'  By  Bills  Payable 
8    //      //  // 

31     //   R.  Morris 


Pd.  my  bonds  in  the  Custom  House 
Pd.  my  notes  to  the  Insurance  Office 
Pd.  charges  on  shipment  per  '•  Columbia" 


4065 

55 

185 

3207 

05 

601 

15180 

40 

0999 

22 

202 

7C 

300 

2724.9a 


June    12    ByR.  Morris 


18 

25 

28 
30 


It 
II 


Warden  &  Bell 
Bills  Receivable 


Pd.  for  Bank's  Bill  of  Exchange 

Pd.  them  on  % 

Pd.  for  J.  Post's  Bill  on  London 

Pd.  for  Sugars  sold  to  G.  Barron 
1st  Co.  Sales  Pd.  Wm.  Hay  his  half  net  proceeds 

House  49  Cedar  Street    Pd.  Carpenter  &  Co.'s  Bill  of  Repairs 
Profit  &  Loss  Pd.  Expenses  1st  Jan'y  to  date 


// 


i> . 


31510 

70 

7200 

10000 

1660 

i       800 

6971 

25 

s               280 

1099 

23 

28010.48 

.  '  1 

36901 

48 

1.  The  footing  lines  are  those  drawn  under  the  amounts  before  adding  up. 
-.  Ihey  are  drawn  close  under  the  foot  of  the  column. 

3.  Directly  opposite  the  line  footing  the  longest  column,  touching  the  same  line  lightly  inside 
the  date  column.  ^     j  •» 

t.  The  closing  lines  are  those  drawn  after  the  columns  are  added  up,  to  keep  the  old  account 
separate  from  the  new  account. 

D.  They  are  always  drawn  on  the  first  faint  line  below  the  figures,  touching  it  lightly  inside 
the  date  columns,  and  doubling  across  the  money  columns,  but  never  runnin-  throu-h 
the  date  columns.  °  *= 

6  The  balance  brought  down  always  occupies  the  first  faint  line  below  the  closin-  line  and 
a  must  always  agree  with  the  cash  in  hand  and  the  balance  of  the  cash  account  in  the 

57 


'.■V 


'■I 


.li> 


li   ; 


|l 


SET  II.— DOUBLE   ENTRY  BOOK-KEEPING. 


THE    INVOICE    BOOK. 


PRELIMINARY  REMARKS. 

In  this  book  *  we  enter  copies  or  abstracts  of  all  invoices  of  goods  received  on  our  ow/i 
account,  on  account  of  others,  and  on  account  of  ourselves  and  others  in  company. 

This  is  the  general  practice  among  merchants,  but  the  author  has  found  it  more  con- 
venient in  extensive  business  '  to  paste  the  original  invoices  into  a  book  made  of  some 
description  of  paper  of  a  larger  size  than  the  invoices.  By  means  of  an  index  to  this 
book,  it  will  be  found  more  convenient  to  refer  to  the  original  invoices  than  by  seeking 
them  from  files. 

The  first  entry  of  an  invoice  '  may  be  either  here  or  on  the  Day  Book,  but  when  it  is 
entered  oh  the  Day  Book,  each  entry  should  be  marked  off"  this  book  as  we  have  done  on 
the  following  page. 

Exporters  sometimes  use  an  "Invoice  outward  book,"  but  we  have  shown  that 
nvoices  of  this  kind  as  well  as  inland  invoices  may  be  entered  on  the  Sales  Book. 

The  parciculars  of  an  invoice  need  not  be  entered  on  the  Day  Book.  *  The  amount  only 
Is  required. 

We  have  not  considered  it  necessary  to  extend  this  book  through  the  whole  set ;  most 
learners  will  easily  learn  its  nature  and  use  from  these  remarks.  It  will  seldom  be  necessary 
to  transcribe  the  book. 

As  far  as  our  exemplification  of  this  book  extends,  the  learner  will  find  its  examples  all 
in  connexion  with  the  Day  Book. 


Inventory  of  Merchandise  on  hand  December  31,  1866. 


D.  B.  1.  !  300  pieces  best  44  London  Chintz  Prints 


100 
8 

100 
50 
50 


//     27  inch  Furniture  Prints 
French  Cambric  Handkerchiefs 
India  Pongees    . 


ff 


II 


II 


II      Bandannas 


Figured 


20  Canton  Crape  Shawls 


@$  4. 

@$  3. 
@$10. 

(«)  $  6. 

@$  7. 

@S  7. 

@$  6. 


1200. 
300. 
80. 
600. 
350. 
350. 
120. 


D.  B.  1. 


PD 

1  to  24 


Invoice  of  24  Bales  Cotton  shipped  by  J.  Taylor  &  Co.  on  board 
the  Brig  Jersey,  Spencer,  Master,  for  New  York,  and  consigned  to 
P.  Duff",  Merchant,  by  his  order  and  for  his  account  and  risk. 


1.450  4.420  7.390  10.410 
2.400  5.430  8.380  11.450 
3.410    6.500    9.410    12.500 


13.  560  16.  580  19.  550  22.  510 
14.540  17.500  20.590  23.540 
15.  520   18.  500   21.  500   24.  560 


1260+1350+1180  +  1360  +  1620  +  1580  +  1640  +  161o" 

=  11600,  @  8  cents. 


CHARGES. 


Commission  purchasing  $928  @  21  per  cent. 

Cartage,  &c 

Freight  and  Insurance    .... 

E.  E.  New  Orleans, 
Dec.  10,  1866. 


S23.20 
1.80 
47. 


i 


J.  Taylor  &  Co. 


D.  B.  1. 


Mr.  p.  Duff, 


New  York,  Jan.  3,  1867. 

Bo't  of  Martin  Hunter  &  Co. 
400  bbls.  Superfine  Flour @  §4  50 

Bec'd  Payment, 

Martin  Hunter  &  Co. 
Per  J.  Manly. 


1.  What  is  the  use  of  this  book? 

2.  How  may  invoices  be  most  conveniently  kept  for  reference? 

3.  Where  is  the  first  entry  of  an  invoice  to  be  made  ? 

4.  How  is  an  invoice  to  be  entered  upon  the  Dav  Book? 


58 


D.B.I.  Mr.  p.  Duff, 


No.  1444.      1  ps.  24? 
//    1448.      1   //   25? 


Bo't  of  Walter  Bayard  &  Co. 


1    1450.      1   //    19?  j 

ooon  -.  —  '^^  y^^-  ^^P®^  ^0^^  ^^^^^  Broadcloth,  @  $  8.  ' 

»    ^280.  1  II  25  yds.  Super  Blue  Broadcloth       .         .    w       8. 

D.  F.  2  II  finest  Saxon  Flannel      .         .        .        .    //     20. 

F.  80  //  Common /'     10. 

Bec'd  Payment, 
„       ^^  By  Note  @  1  month, 

New  York,  Walter  Bayard  &  Co. 

January  15,  1867. 


3000 


928 


72 


1000 


1800 


560 

200 

40 

800 

1600 


59 


Mr.  P.  DUFF, 


'!il 


1; 


li  ' 

I! 


1 1 


!l|? 


I 


ill' 


Bought  of  JAMES  CARTEK. 


D.  B  2. 


D.  B.  2. 


P.  D. 
N.Y. 


P.  D. 
R.  M. 


1  ps.  20?  yds.  Super  Black  Broadcloth 
1   //    20?    II        II      Brown         // 
1  Dress  Coat        .... 

New  York,  Jan.  20,  1867. 


@  85.     102.50 
M     4.      83. 
#  14.50 


Mr.  p.  Duff, 

Bo't  of  C.  Banks, 

100  bbls.  Genesee  Superfine  Flour       .         .         .         •         .  @  85. 

Rec'd  Payment  by  my  note  due  this  day, 

C.  Banks. 

New  York,  Jan.  24,  1867. 

If ■ — 

Invoice  of  Merchandise  shipped  by  R.  Morris  on  board  the  Ship 
Herald,  Chase,  Master,  for  New  York,  by  order  and  for  account  and 
risk  of  P.  Duff,  merchant  there. 
4  Packages,  No.  1  to  4. 

No.  1,  contiining    50  pieces,  3000  yds.,  Figured  Satins  .  @    5s 

600      //       Rolled  Jaconets  .         .    //     5s. 

600      //       Fancy  2-color  Fur.  Prints  .    n   10s., 
600      /'  '/       5-  //  //  .    II  20s. 

CHARGES.  

Commission,  5  per  ct.  on  £1800     .....       £90. 


200 


500 


/,  2, 
//  3, 
"    4, 


// 
// 


Export  duty  and  entry,  £12  10s.    Cartage,  Wharfage,  and 
Lighterage,  £8  10s.  ....... 

Insurance  and  Policy     ....... 


21. 

89. 


£750 
150 
300 
600 


200 


Amount  due  in  Cash  April  10th  next,  sterling 
In  Federal  currency,  $8888.88 

London,  Dec.  30,  1866.  R.  Morris. 

ft 


£2000 


Invoice  of  30  Pipes  Port  Wine,  shipped  by  R.  Morris  on  board 
the  Ship  Herald,  Chase,  Master,  for  New  York,  consigned  to  P.  Duff, 
merchant  there,  for  sale  on  account  of  the  shipper. 

30  Pipes,  3600  galls..  Best  Old  Port         .         .  @  10s.     £1800. 

CHARGES. 

Export  duty,  entry,  &c.,  £44  10s.    Cartage  and 


Wharfage,  £11  10s. 
Insurance  and  Policy 
Cooperage,  Lighterage,  &c. 

London,  Dec.  30,  1866. 
Mr.  p.  Duff, 

(Terms,  3  mos.) 

20  ps.  400  yds.  10-4  Damask  Table  Linens, 
4  //     54?  //     12-4        //  u 

3  //     40?  11      8-4        //  n 


£56. 
96. 

48. 


200. 
£2000. 


R.  Morris. 


Packing-box 


Bo't  of  William  Hat, 

.  @  $3.    81200. 
II  .        .  //     4.        218. 

II  .        .  II     2.  81. 


New  York,  Feb.  12,  1867. 

Mr.  p.  DyFF, 

200  bbls.  Genesee  Flour 
New  York,  Feb.  18,  1867. 


1500 


Bo't  of  T.  Edwards, 

.  @  $5. 


1000 


60 


Inventory  of  Merchandise  on  hand  June  30,  1867. 


2423  Barrels  Flour (^85. 

12115 

6  Pieces,  240  yds.,  Brussels  Carpet 

.    H      1.50 

360 

70      //       Merrimac  Prints, 

.    II      3. 

210 

40       II              II          Furniture    . 

.    '/     4.        j 

160 

!  420       II       English  Prints    . 

.    ff      5. 

2100 

365       //            //        Furniture 

n     6. 

2190 

8       //       161  yds.  Fine  Broadcloth    . 

.    w      6. 

966 

1       //       Fine  Saxon  Flannel    . 

>                 •               • 

11 

62 

1       II       Scarlet        ii 

•               • 

15 

60 

Entered  Ledger,  ^olio  1.    . 

• 

18128    22 

CONCLUDING  REMARKS. 

1.  In  business  the  Inventory  generally  makes  a  pretty  long  document,  but  the  above  will 
sufficiently  explain  its  nature,  and  a  reference  to  it  will  serve  to  explain  the  balancing  of  the 
merchandise  account  in  the  Ledger. 

2.  Teachers  who  use  treatises  on  Book-keeping  which  give  no  example  of  the  inventory 
of  the  merchandise  on  hand  at  the  opening  and  closing  of  the  Ledger,  will  find  it  a  difficult 
task  to  make  the  closing  of  the  merchandise  account  fully  understood.  A  learner  who  has 
never  seen  an  inventory,  will  form  so  vague  an  idea  of  it  from  a  mere  verbal  description, 
that  he  will  probably  forget  even  the  name  of  it  before  he  has  balanced  his  account.  But 
give  him  an  exemplification  of  it,  and  he  will  ask  no  more  questions  about  it. 

3.  I  would  suggest  that  the  inventory  be  always  taken  as  near  the  cost  and  charges  of  the 
goods  as  possible.  Having  it  upon  this  principle  enables  us,  as  we  have  shown, — Note  15, 
page  36— -to  ascertain  the  average  gain  per  cent,  upon  the  amount  of  goods  sold,  which 
is  at  all  times  an  important  matter  for  the  merchant  to  know.  But  I  shall  perhaps  be  told 
that  taking  the  inventory  upon  this  principle  will,  in  some  instances,  produce  a  false  result 
in  the  balance  sheet.  I  admit  that  in  some  cases  it  will.  But  take  it  upon  any  principle 
you  please,  and  it  is  only  an  estimated  value.  The  actual  value  can  only  be  determined  by 
sale :  and  as  a  general  rule  the  cost  and  charges  form  a  pretty  correct  estimate  for  the  bal- 
ance sheet.  But  if  circumstances  render  it  necessary  to  deviate  from  this  rule  of  estimate, 
I  would  still,  for  the  purpose  above  referred  to,  take  the  account  upon  the  same  principle' 
and  afterwards  let  an  estimated  deduction  or  addition  be  made  to  it  for  the  balance  sheet. 

4.  On  the  last  page  there  are  two  invoices  from  Morris.  The  first  is  on  our  own  account, 
and  the  second  on  consignment.  The  learner  will  perceive  from  this  that  there  is  not,  in 
general,  any  use  for  a  Commission  Invoice  Book.  Such  a  book  is  only  required  in  a 
few  of  the  most  extensive  commission  houses.  All  invoices  of  goods  received  may  be 
entered  upon  this  book.     When  the  business  is  extensive,  an  index  will  be  found  useful. 

61 


1*4 


'itl 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 


THE  SALES  BOOK. 


PRELIMINARY  REMARKS. 

The  purpose  of  keeping  this  book  *  is  to  avoid  entering  the  particulars  of  long  invoices 
upon  the  Day  Book. 

In  extensive  business  the  full  particulars  of  every  sale  ^  are  first  entered  on  this  book, 
and  the  amount  afterwards  transferred  to  the  Day  Book,  when  it  is  marked  off  this  book  as 
we  have  done  on  the  next  page. 

By  referring  to  our  entry  of  the  12th  February,  it  will  be  seen  that  invoices  outward  may 
be  entered  here  as  well  as  inland  ones. 

In  a  limited  business  the  '  Day  Book  serves  for  entering  all  sales  upon  :  in  this  case  the 
Sales  Book  is  dispensed  with. 

The  following  exemplification  extends  only  through  two  months  of  our  Day  Book.  But 
this  will  be  found  quite  sufl&cient  to  explain  its  use,  and  it  is  so  easily  understood  that  the 
learner  will  hardly  find  it  necessary  to  transcribe  it. 

In  a  very  extensive  businoss  there  is  often  a  Sales  Book  required  in  each  department,  in 
which  the  salesman  in  that  ;'.  jpartment  enters  all  his  sales.  From  hence  it  is  transferred 
afterwards  to  the  Day  Book  or  to  the  Journal  by  the  bouk-keeper. 

It  may  be  proper  to  observe  here  that  the  Journal  may  be  composed  direct  from  the  aux- 
iliaries without  passing  the  entries  into  the  Day  Book.  By  this  course  a  considerable 
amount  of  writing  is  saved.  But  the  author  will  not  attempt  the  explanation  of  that 
method  of  journalizing  in  this  Set,  the  object  of  which  is  to  make  the  principles  of  the 
science  thoroughly  understood  by  the  simplest  and  most  efficient  plan  of  teaching,  leaving 
details  that  would  embjirrass  the  learner  and  hinder  his  teacher  to  be  explained  hereafter. 

Persons  who  are  unacquainted  with  the  labors  of  the  class-room,  generally  form  but  an 
imperfect  idea  of  the  nature  of  the  teacher's  task  in  first  inducting  the  uninitiated  pupil 
into  the  science  of  accounts.  It  is  sufficiently  difficult  when  the  entries  are  all  arranged 
for  journalizing  in  the  Day  Book,  but  let  the  pupil's  attention  be  divided  between  the  Day 
Book  and  some  five  or  six  auxiliaries,  and  the  matter  becomes  infinitely  more  difficult  and 
perplexing.  We  have  tried  this  plan  of  teaching.  These  remarks  are  therefore  dictated 
by  experience. 

This  plan  of  journalizing  will,  however,  be  found  fully  explained  in  the  second  part  of 
this  work,  where,  after  having  fully  mastered  the  principles  of  the  science,  the  pupil  can 
understand  and  apply  them  with  all  desirable  ease. 


1.  What  is  the  object  for  keeping  the  Sales  Book? 

2.  When  this  book  is  kept,  where  are  the  particulars  of  each  sale  first  entered? 

3.  When  no  Sales  Book  is  kept,  where  are  the  particulars  of  the  sales  first  entered? 


62 


NEW  YORK,  January  3,  1867. 


D.B.I. 


D.B.I. 


Sold  A.  Stuart  &  Co.,  for  Cash— 
20  pieces  London  Prints 
10      II       plain  Pongees 
10      II      figured     . 
10      II       Merrimac  Prints 


10. 


Sold  Thomas  Edwards,  on  his  note  @  30  days — 

400  barrels  Flour 

200  pieces  London  prints         .         .         .         . 


t$5. 
88. 
@S9. 
©83. 


@S5. 
@  $5. 


100 
80. 
90. 
30. 


2000. 
1000. 


D.  B.  1. 


Sold  James  Carter,  on  account — 
3  hhds.  Sugar,  viz.  1204,  1196, 1100  =  3500ib. 

Tare  10  per  ct.   .         .         .         350     3150Jb  @  8c.  252. 
50  pieces  Merrimac  Prints        ,         .         .        .         .    @  $4.  200. 


15. 


D.  B.  1.    Sold  Henry  Pryor,  in  payment  for  James  Carter's  order  on  me- 


6  pieces  Flannel 

2  yards  fine  Broad  Cloth 


@  815. 
89. 


90. 
18. 


D.  B.  1. 


16. 


D.  B.  2. 


D.  B.  2. 


Sold  James  Carter,  on  account — 
100  barrels  Flour    . 
10       II       Corn  Meal    . 
15       //       Rye      II 
5      // 


Herring 


@S5. 
@83. 
@83. 
@85. 


500. 
30. 
45. 
25. 


19. 


J.  T.  & 
Co. 


Sold  James  Carter,  on  account 

4  pieces  fine  Blue  Broad  Cloth,  19?,  20,  20?,  20  =  80  yds.,  @  $5 

Sold  Capt.  Rivers,  in  part  payment  of  the  Ship  Hudson — 
240  barrels  Genesee  S.  F.  Flour  ...  ^5 

60  hhds.  N.  0.  Sugars,  71,1111b 

Less  Tare  10  per  ct.  'y  11        Net  64,000ib  @  6  J, 
10  chests  H.  S.  Tea        .      T       Net  10001b  @  70, 

relb.l2. 


1200. 

4000. 
700. 


Invoice  of  Cloths,  Silks,  &c.,  shipped  on  board  the  Brig  Jersey, 
Spencer,  master,  for  New  Orleans.  Consigned  to  J.  Taylor  &  Co., 
for  sale  on  my  account — 

20  pieces,  1200  yds.,  Figured  Satins         .         .     @  $1.50     81800. 


4 
8 
20 
4 
3 


// 
II 
II 
It 


80? 
160 
400 

54? 

40? 


// 
II 
II 
It 


Best  Black  Cassimere 
S.  W.  Black  Broad  Cloth 
10-4  Damask  Table  Linen 
12-4        //  II         n 

8-4         //  «r         # 

CHARGES.  


Packing  Boxes  84.50,  Cartage  81 
Freight  and  Insurance 

I 

:E.  E.  New  York,  ") 
I  12th  Feb.,  1867.    | 


85.50 
27.50 


161. 

800. 

1200. 

218. 

81. 

4260 
33. 


300 


3000 


452 


108 


600 


400 


5900 


4298 


P.  Duff 


63 


i' 


I( 


Invoice  of  Tea  shipped  by  the  Brig  Jersey,  Spencer,  master,  for  New  Orleans, 
and  for  account  and  risk  of  J.  Taylor  &  Co.,  and  to  them  consigned. 


bv  order 


J.  T.  & 
Co. 


10  chests  H.  S.  Tea,  wt. 
Tare    . 


9151b. 

115      Net  8001b  @  75 


$600. 


CHARGES. 


Cash  Paid  Freight  and  Cartage  .... 
Comm'n  5  per  cent,  on  S600  .  .  .30. 
Comm'n  h  per  cent,  for  effecting  Insurance     3^ 

E.  E.  New  York, 
12th  Feb.,  1867. 


) 


$11. 
33. 


P.  Duff. 


44. 


644 


18. 


Sold  R.  Banks,  in  part  payment  of  R.  Morris's  draft  on  me  in  his 
favor — 

40  barrels  S.  F.  Flour @  $5. 

// 
Sold  W.  Bayard  &  Co.,  in  part  payment  of  my  note  due  this  day — 

100  barrels  fine  Flour @  $5. 

28. 

The  following  articles  were  destroyed  by  fire  in  my  store  in  Front 
Street,  yesterday : — 

100  barrels  Corn  Meal Cost  S3.         300. 

2U0       //       Rye  Flour ''     $3.         600. 

300      //       Wheat //    $4.       1200. 

Amount  of  Damages  upon  Sugars  and  other  goods, 

agreed  upon  by  the  appraisers         ...  .     1590. 

I  Amount  claimed  upon  my  policy,  and  admitted  by 

the  Insurance  Office        ........ 


200 


500 


3690 


This  entry  marks  out  the  course  that  we  would  in  general  recommend  in  case  of  loss  by 

fire,  particularly  in  a  partial  loss.     In  some  kinds  of  business  it  is  often  found  more  difficult 

to  prove  the  loss  and  damage,  than  inexperienced  persons  generally  imagine.    Although  the 

author  has  nothing  himself  to  complain  of  in  his  past  transactions  with  insurance  offices. 

enough  has  come  under  his  notice  to  convince  him  that  the  greater  part  of  insurers  do  not 

sufficiently  study  the  terms  of  their  contract  as  embraced  in  their  policy.     Every  office  has 

a  form  of  policy  of  its  own,  and  these  forms  are  so  various,  and  sometimes  so  worded,  that 

it  is  very  difficult  to  make  out  how  you  are  to  proceed  in  case  of  loss,  or  indeed  whether 

you  can  maintain  an  action  at  all  upon  the  policy.     Unless  the  nature  and  position  of  the 

property  are  very  accurately  described,  a  part,  or  even  the  whole  of  it,  may  fall  without  the 

scope  of  the  policy ;  for  every  condition  inserted  in  that  instrument,  either  in  the  printed 

proposals  or  in  writing,  are  parts  of  the  contract,  and  must  be  strictly  and  literally  observed. 

A  person  of  our  acquaintance  once  insured  his  goods  in  the  first  and  second  floors  of  the 

building,  the  only  parts  he  then  occupied.    He  either  did  not  notice  the  terms  of  his  policy, 

or  forgot  its  restriction  to  these  particular  parts  of  the  building,  and  afterwards  removed  a 

great  part  of  his  goods  to  the  cellar  and  the  third  floor.     A  fire  afterwards  occurred,  and 

he  could  recover  nothing  upon  his  loss  in  the  cellar  or  the  third  story.    In  another  case  the 

insurer  accepted  of  a  policy  in  which  was  inserted  the  condition,  that  in  case  of  loss  the 

money  was  not  to  be  payable  until  the  insured  produced  a  certificate  of  character  frorii  the 

minister  of  the  parish.     It  was  afterwards  decided  that  he  could  not  recover,  although  the 

minister  wrongfully  withheld  the  certificate ;  for  it  seems  to  be  a  settled  legal  maxim,  that 

if  you  undertake  for  the  act  of  a  stranger  you  must  see  it  done. 

Although  these  remarks  do  not  strictly  belong  to  our  subject,  yet  they  cannot  be  far  out 
of  place  in  connection  with  the  last  transaction  recorded  in  our  Sales  Book.  They  may,  at 
leastj  serve  to  put  the  young  and  inexperienced  upon  their  guard  in  entering  into  these 
important  contracts. 

64 


COMMISSION   SALES   BOOK. 


INTRODUCTORY  REMARKS. 

This  book  ^  is  only  required  in  extensive  commission  warehouses.  It  is  kept  in  folios  • 
to  the  Dr.  side  are  placed  the  particulars  of  all  charges  attending  the  sales:  »  and  at  the 
Cr.  side  the  particulars  of  each  sale.  When  the  goods  are  all  sold  *  the  account  is  debited 
lor  the  net  proceeds,  which  is  at  the  same  time  carried  to  the  credit  of  the  owner  or  to  the 
credit  of  cash  if  you  pay  him  at  the  time  you  render  account  sales.  The  form  of  this 
account  will  be  found  among  the  mercantile  forms — p.  117. 

All  the  entries  of  both  sides  this  book  pass  regularly  to  »  the  Day  Book  frefer  by  tht- 
dates  and  see)  and  are  then  marked  off"  this  book  in  the  manner  we  have  directed  in  the 
Cash  Book. — Note  7,  p.  53. 

In  a  limited  commission  business,  « the  sales  of  each  consignment,  as  well  as  the  charges 
attending  it,  may  be  entered  at  once  upon  the  Day  Book  without  a  sales  book :  and  when 
an  account  sales  is  required  it  can  be  readily  made  out '  by  reference  from  the  sales  account 
in  the  Ledger  to  the  Day  Book. 

There  can  be  no  entry  of  the  invoice  of  a  consignment  upon  this  book.  That  must  be 
21  to  28''^''''  ""^  ^''''^  only.«-See  Invoice  Book,  p.  60:  also  Rule  10,  Questions 

In  the  second  part  of  this  work  will  be  found  another  method  of  keeping  consignment 
accounts :  but  the  principle  is  essentially  the  same  as  this.  The  sales  of  Merchandise  on 
acct.  of  ourselves  and  others  in  company  is  kept  also  upon  this  book  » in  all  respects  as  we 
have  just  described  for  the  sales  of  others.  f  a  wc 

The  Order  Book  is  used  for  entering  orders  received  for  goods.  It  is  so  simple  that  I 
^1°^^^^^^  ^*  necessary  to  give  an  exemplification  of  it 

..^A  ^Y^^^l  ■^^''?'  ^'  ^^'"^  ^"^  improved  form  of  Check  Book,  will  be  found  in  the 
second  part  of  this  work. 


TEACHERS  EXAMINATION. 


1.  When  is  this  book  required  ? 

2.  What  is  placed  to  the  Dr.  side? 

3.  What  at  the  Cr.  side? 

4.  What  is  to  be  done  when  the  goods  are  all  sold? 

6.  To  what  book  are  the  entries  of  this  book  transferred? 


E 


6.  How  may  the  sales  be  kept  in  a  limited  commission  busi- 
ness? 

c"  ?v^  ^^^  *^®  account  sales  be  made  out  in  this  case? 

8.  W  hat  is  done  with  the  invoice  of  a  con.signment ' 

9.  How  is  the  sales  of  Merchandise  on  account  of  ourselvat 

and  others  in  Co.  to  be  kept  ? 


65 


i 


Dr. 


SALES  OF  WINES  SOLD  BY  OEDER  AND 


FOE  ACCOUNT  OF  E.  MOEEIS,  LONDON. 


Cr.      1 


1867. 

Feb. 


Mar. 


5 
12 


20 


12 


1  For  my  two  bonds  passed  to  the  Custom  House,  viz. : 
one  at  3  months,  for  .  .  .1111.11 
one  at  6    ,  //  "        •         •         •  im^l 

For  Cash  paid  freight  and  primage 
//       H        II     for  gauging    .... 
;/       II        II     for  carting  and  cooperage 
H      u        /r    for  cartage,  freight,  and  insu- 
rance on  10  Pipes  Wine  consigned  to 
J.  Taylor  &  Co.,  New  Orleans     . 
u    Cash  refunded  R.  Banks,  6  galls, 
gauged  Wine  sold  18th  inst. 

n    Storage  .... 

//    Advertising  .... 
u    Commission  on  $12,120,  @  5  per  cent. 

•  n/p.  to  R.  Morris's  credit  due  by  average,  May  2* 


1M7. 

Apr. 


20 


May    18 


J^ 


II 


ii, 


over- 


2222  22 

167  78 

1  50, 

3  50! 


28 


8068 


1.  We  find  the  entry  of  this  and  all  the  others  on  the 
Day  Book  by  their  respective  dates. 

2.  This  is  found  by  deducting  the  charges  from  the 
total  sales.     See  small  figures  in  the  margin. 

3.  The  entries  are  generally  first  made  here  and  after- 
wards transferred  to  the  Day  Book,  when  they  are 
marked  oflF  this  book  thus  {/  to  show  how  far  the 
transfers  have  been  made.  There  is  no  objection,  how- 
ever, to  making  the  first  entry  of  some  of  the  transac- 
tions on  the  Day  Book,  and  the  corresponding  entry 
afterwards  here. 


Sales  of  40  Bales  Brussels  Carpeting  for  the  Joint 
For  Bonds  passed  to  the  Custom  House  for  duties 


Paid  freight  and  primage  per  "  Vixen 
//  Insurance  against  fire,  and  policy 
//     Cartage     .         .         .         •         • 

For  Storage,  $3;  Advertising,  $10     . 
Commission  2\  per  cent,  on  $15874 

R.  Morris's  J  net  proceeds  is 
J.  Taylor  &  Co.'s       do. 
My  do. 


II 


II 
n 
If 


150. 
33. 
2. 

8BMJ6 


Note.— The  learner  will  find  forms  of  the  account  sales  of  both  the  abore  j 
consignments  among  the  Mercantile  Forms  at  the  end  of  the  Ledger— pp. ; 
117  and  118. 

*  The  rule  for  finding  this  average  time  is  given  on  the  next  page. 


1887. 

Feb. 


9 


21 

3 

50 

14 

50 

606 

2444 

624 

9052 
12120 


12 


Mar. 


18 
12 


3000 


1887. 

May 


3185 


185 

13         I 

396  85   409  85 

4093  05 

4093  05 

4093  05  12279,  15 

15874 


13 
18 


Sold  for  cash  to  J.  Lorillard, 

1  Pipe,  120  galls..  Port  Wine      .         .     @  $3. 
Sold  Wm.  Park  on  his  note  @  4  mos. — due  June  12, 

5  Pipes,  600  galls.,  Port  Wine     .         .    @  $3.50 
Sold  to  W.  Bayard  &  Co.,  as  cash,  this  day, 

3  Pipes,  360  galls..  Port  Wine     .         .    @  $3. 
Shipped  to  New  Orleans,  per  Brig  Jersey,  and  consigned 

to  J.  Taylor  &  Co.,  for  sale  on  account  of  Morris's 

Sales,  10  Pipes  Port  Wine,  1200  galls.,  invoiced  at 

$3.50  per  gallon.* 
Sold  to  R.  Banks,  as  cash,  this  day, 

2  Pipes,  240  galls.,  Port  Wine     .         .     @  S3  50 
Rec'd  for  n/p.  of  the  above  consignment  to  J.  Taylor 

6  Co.,  Barclay  &  Co.'s  Acceptance  @  60  days,  due 
May  14,  for 

Taken  to  my  own  acct.  at  market  prices,  the  remaining 
9  Pipes,  1080  galls.,  @  $3,  @  60  days,  due  May  14 


12120. 

3068. 

9052. 


TEACHER'S  EXAMINATION. 

1.  How  do  you  find  the  entry  of  this  upon  the  Day  Book  ? 

2.  How  is  the  net  proceeds  found? 

3.  Are  the  entries  first  made  here  or  first  on  the  Day  Book? 

*  No  fexther  entry  can  be  made  of  this,  it  being  a  re-consicnment,  until 
returns  are  received— See  March  12.  t>  ">  """* 


Account  of  E.  Morris,  J.  Taylor  &  Co.,  and  myself,  each  h 

Sold  to  Warden  &  Bell  for  draft  on  New  Orleans, 
120  pieces,  4250  yards,       .         .         .     @  $2. 

Net  proceeds  of  55  pieces  sold  at  Austin  &  Co.'s  auc- 
tion    

Taken  to  my  own  account, 

55  pieces,  1907  yards,         .        .        .      @  $2. 


15874. 
3594.8S 


H.  P.  3^12279.15 
4003.06 


I 


4500 
3240 


360 
2100 
1080 


840 


l- 


7740 
12120 


3560 

3814 


8500 


7374 


16874 


G6 


67 


u 


SET  II.— DOUBLE  ENTRY  COMMISSION  SALES  BOOK. 


CONCLUDING  REMARKS  ON  CONSIGNMENTS. 

1.  As  the  average  time  upon  which  the  sales  of  a  consignment  will  fall  due  is  almost 
always  required,  the  accountant  must  be  prepared  to  work  out  the  solution  promptly  and 
accurately.  A  course  of  practical  exercises  will  be  found  hereafter  under  the  head  of 
Commercial  Calculations.  We  subjoin  the  solution  of  the  preceding  sales.  The  following 
is  the 

2.  Rule.— Multiply  each  sum  by  the  time  that  intervenes  between  its  maturity  and  that 
of  the  first  sum  due.  Divide  the  sum  of  these  products  by  the  total  amount  of  salee,  the 
quotient  is  the  equated  time  counted  forward  from  the  day  upon  which  the  first  sum 
&lls  due.* 

Let  us  illustrate  this  rule  by  the  sales  on  the  last  page.  Three  days  of  grace  are  allowed 
upon  all  notes  and  acceptances,  but  no  grace  is  allowed  upon  cash  sales  or  sales  on  Book 
account. 


SOLD. 

Feb.    5. 

vox. 
Feb.     5. 

DATS. 

$360.  X      0. 

9. 

June  12. 

2100.  X  127,  —    266.700. 

9. 

Feb.     9. 

1080.  X      4,  —        4.320. 

18. 

18. 

840.  X    13,  —      10.920. 

Mar.  12. 

May   14. 

7740.  X    98,  —    758.520. 

^ 


12,120. 


)l,040,460.(86days: 


Gives  86  days,  nearly,  to  count  forward  from  Feb.  5,  making  the  sales  fall  due  by  average 

May  2. 

Fractional  parts  of  a  day  are  never  counted,  unless  the  fraction  amounts  to  a  half  day  or 

upwards :  it  then  counts  another  day. 

3.  As  inexperienced  persons  are  apt  to  mix  up  consignments,  charges,  and  advances  upon 
the  consignments  all  into  one  account,  I  must  again  direct  particular  attention  to  Rule  X., 
page  41.  I  have  there  marked  out  the  course  for  conducting  these  accounts,  sanctioned  by 
the  most  experienced  accountants.  A  regular  account  of  sales  drawn  out  upon  this  plan 
enables  the  owner  of  the  consignment  to  see  what  the  adventure  has  produced  him,  and  thus 
determine  at  sight  his  gain  or  loss  by  the  speculation.  This  will  not  be  shown  by  your 
account,  if  you  mix  up  advances  and  other  matters  in  it. 

4.  When  consigned  goods  are  retailed,  it  is  hardly  possible  to  keep  a  detailed  account  of 
each  sale.  You  may,  in  such  cases,  credit  the  sales  to  your  own  merchandise  account;  and 
when  the  account  sales  is  required,  the  difference  between  the  quantity  received  and  tHp 
quantity  on  hand,  will  be  the  quantity  sold,  for  which  render  account  sales,  closing  the  sales 
account,  and  entering  on  the  Invoice  Book  the  articles  on  hand  when  this  account  was 
rendered. 


*  Pkoof  — MolUply  each  sum  by  the  time  that  intervenes  between  its  maturity  and  that  of  the  last  sum  falling  due.  Divide 
the  sum  of  these  products  by  the  whole  amount  of  sales,  the  quotient  is  the  equated  time  codntino  back  from  the  day  upon 
which  the  latest  sum  falls  due. 

68 


DOUBLE  ENTEY  BOOK-KEEPING. 


DAY  BOOK  AND  JOURNAL. 

SET  II. 


PEELIMINARY  DIRECTIONS   TO   TEACHERS   AND  LEARNERS. 

-The  opening  Day  Book  entry  of  this  set  is  drawn  from  the  » balance  account  of  the  pre- 
ci  iing  set.  By  referring  back  to  it,  and  attentively  comparing  it,  the  learner  cannot  fail 
to  obtain  a  distinct  conception  of  the  process  of  opening  new  books  from  old  ones, — an  ope- 
ration seldom  well  understood  by  young  book-keepers. 

He  must  also  understand  that  the  cash  in  hand  'must  be  entered  in  the  Cash  Book. 

The  Merchandise  on  hand  'must  be  entered  in  the  Invoice  Book. 

The  Notes  and  Bills  in  hand  *must  be  recorded  in  the  Bills  Receivable  Book. 

The  Notes  and  acceptances  he  has  outstanding  «must  be  recorded  in  the  Bills  Payable 
Book.  "^ 

The  teacher  will  now  follow  the  directions  given  on  page  27  for  inducting  his  pupils 
thoroughly  into  the  language  and  form  of  the  journal.  Those  who  patiently  submit  to  that 
course  will  seldom  experience  any  difficulty  after  the  first  one  or  two  pages.  Students  will 
also  find  it  a  useful  exercise  to  give  verbally,  the  journal  entries  to  be  made  in  their  books 
by  each  of  the  persons  named  in  our  entries. 

As  some  business  men  require  their  journals  to  embody  brief  explanations  of  their  trans- 
actions, I  have  journalized  the  month  of  May  in  this  manner  as  a  specimen.  But  I  have 
not  given  the  whole  journal  upon  this  plan,  because,  in  his  incipient  steps,  every  thing  that 
takes  his  attention  off  the  Ledger  titles  has  a  tendency  to  perplex  and  embarrass  the 
learner. 

We  have  adhered  to  that  form  of  Journal  in  most  general  use,  and  it  is  to  be  observed 
that  it  IS  a  form,  the  practice  upon  which,  prepares  the  student  for  using  any  other  without 
difficulty. 

It  will  be  found  useful  to  have  some  copies  of  the  text-book  prepared  with  blank  paper 
pasted  over  all  the  Journals.  From  these  books  require  each  pupil,  in  turn,  to  journalize 
all  the  Day  Book  entries  of  the  month  upon  the  black-board,  before  writing  them  in  his 
books.  This  compels  them  to  study  each  lesson  well  mentally  before  attempting  to  write  it. 
It  the  learner  does  not  wish  to  cheat  himself  out  of  thorough  instruction,  he  should  never 
copy  any  part  of  the  printed  Journal. 


1.  Where  do  we  obtain  the  materials  for  openinjr  this  set  of 

books? 

2.  What  is  to  be  done  with  the  cash  in  hand? 


TEACHER'S  EXAMINATION. 


3.  What  with  the  Merchandise  in  hand  ? 

4.  What  with  the  Notes  in  hand  ? 

5.  What  with  our  own  Notes  in  circulation  ? 


69 


11;:' 


«tM 


NEW  YOBK,  January  1,  1867. 


'Inventory  of  my  Effects  "^  Balance  account,  Ledger  A.  fol.  3. — 
Mdse.  in  hand         .         .         .     ^  Invoice  Book,  p.  1.     $3000. 
Cash  in  hand  ....     Ledg.  A.  fol.  2.  7300. 

Due  me  on  notes      .         .         .     f  Bill  Book,  p.  1.  3000. 

William  Hay  owes  me      .         .     Ledg.  A.  fol.  2.  8000. 

House  and  Lot  44  Broadway  #        ir        8.  ''^.^A^^- '' ^^^^^ 


'Debts  owing  by  me  '^  Balance  account  Ledger  A.  fol.  3. — 

Due  on  my  notes  ^  Bill  Book,  p.  2 300. 

Due  Warden  &  Bell     ....      Ledg.  A.  fol.  2.     500. 
//    R.  Morris,  London,  due  31st  ult.  .  u  it        2000. 


3. 


Sold  A.  Stuart  &  Co.  for  Cash — 
Mdse.  ^  Sales  Book,  p.  1. 


n 


•Received  *^  Brig  Jersey,  Spencer,  Master,  from  J.  Taylor  &  Co., 
New  Orleans,  for  my  acct. — 

24  bales  Cotton,  ^  Invoice  Book,  p.  1 

Accepted  their  draft  on  me  for  amt.  of  the  Invoice  in  favor  of 

Ryan  &  Dale,  @  10  days'  sight,  $1000. 


// 


Bought  for  Cash  of  Martin  Hunter  &  Co.,  Flour  ^  I.  B.  1. 

::==:==^        10,         ======= 


Sold  Thomas  Edwards,  on  his  note  @  30  days,  Mdse.  '^  S.  B.,  p.  1. 


Sold  James  Carter  on  account,  Mdse.  "^  S.  B.,  p.  1. 
======     15,      == 


Bought  of  Walter  Bayard  &  Co.,  on  my  note  @  1  month,  Mdse. 

J..  J5.  J..        .....••••• 


•Paid  James  Carter's  order  on  me  in  favor  of  H.  Pryor,  in  Mdse. 
•f  Sales  Book  1 

===================    16.     ===========================^ 


*  Received  from  James  Carter  Cash  in  full 

___ H        


*Paid  Cash  in  the  City  Bank  for  my  note  in  favor  of  A. 

Stuart  &  Co.  ........      300. 

Also,  my  acceptance  of  J.  Taylor  &  Co.'s  draft  in  favor  of 

Ryan  &  Co .         .      •  .         .    1000. 

If        


Sold  James  Carter  on  account,  Mdse.  *^  Sales  Book  1. 


1.  T<m  may  joonudize  direct  from  the  old  Balance  account  without  a  Day  Book  entry,  thus:— 

Sundries  Dr.  To  Sundries,  $31,300, 
per  Balance  account,  Ledg.  A.  f.  3. 

Mdse 3000. 

Cash 7300. 

Bills  Receivable 3000. 

William  Hay 3000. 

House  and  Lot  44  Broadway    ....    15000. 

To  Bills  Payable 300. 

"  Warden  &  Bell 500. 

"  R.  Morris 2000. 

"  Stock 28500. 

2.  We  do  not  here  credit  Taylor  &  Co.,  because  we  have  accepted  their  draft  for  the  amount, 

3.  We  have  paid  Carter's  order  upon  us,  he  therefore  gets  in  debt  to  us. 

4.  When  a  person  pays  us  in  full,  we  ought  to  close  his  account. — See  notes  5  and  6,  page  23. 

5.  Neither  the  Bank  nor  any  of  the  parties  named  here  are  to  be  debited,  because  they  do  not 

get  in  debt  to  us. 
As  the  entries  are  journalized  they  should  all  be  marked  off  this  book,  as  in  the  margin  of 
the  first  entry  above. 

70 


2800 


300 


1000 


1800 

3000 
452 

1600 

108 
560 


1300 
600 


1 
1 
2 
3 
3 
4 

1 
4 
5 
5 

2 
1 

1 

4 

1 
2 

3 

1 

5 

1 

1 
4 

5 
1 

2 
5 

4 
2 


NEW  YORK,  January  1,  1867. 


*  Sundries,  Dr.  to  Stock   . 

Mdse 

Cash     .... 

Bills  Receivable 

Wm.  Hay 

House  and  Lot  44  Broadway 


31300 


3000 
Ledger  A.  fol.  2.*   7300 

1.  3000 

2.  3000 

3.  15000 


It 


It 
u 


'  Stock,  Dr.  to  Sundries   . 
To  Bills  Payable 
//   Warden  &  Bell 
//   R.  Morris,  London 


2800 


Ledger  A.  fol.  2. 


0 


2, 


3. 


Cash,  Dr. 
To  Mdse. 


Mdse.,  Dr.     . 
«  To  Bills  Payable 


Mdse.,  Dr.     . 
To  Cash    . 


10. 


Bills  Receivable,  Dr. 
To  Mdse.  . 


James  Carter,  Dr. . 
To  Mdse.  . 


16« 


Mdse.,  Dr.     . 
To  Bills  Payable 


*  James  Carter,  Dr. . 
To  Mdse.  . 


16. 


Cash,  Dr 

*  To  James  Carter,  to  close  acct.   . 

^  Bills  Payable,  Dr. . 
To  Cash    .         .         .        . 


James  Carter,  Dr.  . 


300 


1000 


1800 


3000 


452 


1600 


108 


560 


1300 


600 


To  Mdse.  . 


300 

500 

2000 


300 


1000 


1800 


3000 


452 


1600 


108 


560 


1300 


600 


TEACHER'S  EXAMINATION. 


1.  Cannot  these  two  entries  be  made  direct  from  the  old  Balance  account? 

2.  Why  not  credit  Taylor  &  Co.? 

3.  Why  debit  Carter  for  this  amount? 

4.  What  is  to  be  done  with  Carter's  account  when  this  is  posted? 

5.  Why  not  debit  some  of  the  parties  named,  or  the  Bank  ? 

*  Although  it  is  not  generally  done,  book-keepers  will  find  the  convenience  of 
making  the  opening  entries  of  a  new  Ledger  always  give  a  direct  reference  to  the 
old  one.  See  that  every  journal  entry  conforms  to  the  Book-keeper's  FIRST 
RULE — equal  debits  and  credits. 


71 


■(  1, 


i* 


i 


l! 


' 


•I 

-J 


2 


NEW  YORK,  January  18,  1867. 


*  Paid  Cash  for  Repairing  House  44  Broadway 

If  — 


■  Received  Cash  for  a  Quarter's  Rent  of  House  44  Broadway  . 

If  . 


Received  of  James  Carter  his  note  @  20  days  in  full 

-         19. 


Sold  James  Carter  on  acct.  Mdse.  "^  Sales  Book  1. . 
20.         


Bought  of  Captain  Rivers  the  ship  Hudson  for  $16000. 
Sold  him  in  part  payment  Mdse.  '^  Sales  Book  1.    . 
Paid  him  in  Cash  ........ 

Gave  him  my  note,  dated  15th  inst.,  @  3  months,  for  the 
balance       ......... 


5900. 
2100. 

8000. 


280 
150 
600 
400 


16000 


If 


*  James  Carter  has  failed,  and  I  have  compounded  with  him  at  50  cents  on 
the  dollar.     Rec'd  the  same  in  Mdse.  I.  B.,  p.  2.        .         .        200. 
The  Balance  is  lost         .....        200. 


24. 


Gave  Warden  &  Bell  my  Order  on  James  Walker  for  the  balance  I  owe 
them 


Received  of  C.  Banks  in  payment  for  his  note  due  this  day — 

Mdse.  "^  Invoice  Book,  p.  2 500. 

Cash, 500. 

==========      30.       izz: 


*  Received  of  William  Hay  payment  of  his  account  of  $3000  now  due — 

Cash 1500. 

His  note  @  60  days  for  the  balance     .         .         .     1500. 

63  days'  interest  included  .         .         15.75       1515.75      3015    75 


400 


500 


1000 


Paid  Cash  for  disbursements  of  Ship  Hudson  . 

•  31.  -r 


Exchanged  notes  with  W.  Morris  for  our  mutual  accommodation,  each 
note  drawn  at  30  days,  for  . 


// 


1200 


800 


•  Exchanged  notes  with  J.  Warden  for  our  mutual  accommodation,  each 
note  drawn  at  30  days,  for  $600,  and  I  have  discounted  his  note  in  the 
City  Bank.     RecM  Cash  net  proceeds  of  same       .         .         .       596.70 

'6o  days'  discount   .....  3.30        600 


j  1.  Here  House  in  Broadway  ia  Dr.,  because  it  cost  us  this  sum. 

i  2.  House  in  Broadway  mu.st  be  credited  for  what  it  brings  us  in  for  sale  or  rent. 

i  3.  Carter  must  be  credited  for  wiiat  he  gets  out  of  my  Debt. 

}  4.  We  only  credit  Hay  for  what  he  gets  out  of  our  Debt.  Profit  &  Loss  or  Interest  account  is  credited 
for  the  gain  on  the  transaction. 

[  5,  As  we  disposed  of  Warden's  note  immediately,  it  is  not  necessary  to  debit  Bills  Receivable  for  it,  as 
in  the  preceding  entry,  where  we  retain  the  note.  No  property  account  can  be  credited  until  it 
has  been  previously  debited.  The  Bills  Receivable  account  must  show  that  we  received  the  note 
before  it  can  show  that  we  passed  it  away.  Bills  Payable,  the  first  thing  delivered,  must  be 
credited. 


72 


NEW  YORK,  January  18,  1867. 


4 
2 

2 
4 

3 
5 

5 
1 

6 
1 
2 
4 

5 
1 
6 

5 

7 

3 
1 
2 


*  House  44  Broadway,  Dr. 
To  Cash        .         .         . 


Cash,  Dr. 
'  To  House  44  Broadway 


Bills  Receivable,  Dr. 
To  James  Carter   . 


James  Carter,  Dr. 
To  Mdse.       . 


19. 


•  •       •       • 

•       •       . 

•  •       •       « 


=- ^— -^=^       20. 

Ship  Hudson,  Dr.  to  Sundries 

To  Mdse 

//    Cash    .... 
//   Bills  Payable    . 

: If 


280 


150 


600 


400 


16000 


•  Sundries,  Dr.  to  James  Carter,  to  close  account  . 

Mdse 

Profit  &  Loss     . 

24.       -  '- 


,1     200 
if     200 


280 


150 


600 


400 


5900 
2100 
8000 

400 


Warden  &  Bell,  Dr. 
To  James  Walker 


ft 


2 
3 
3 
6 

6 
2 

3 
4 

4 
2 


Sundries,  Dr.  to  Bills  Receivable    . 

Mdse 

Cash     .         .         .         .    '    .    *    . 

30.       = 


*  Sundries,  Dr.  to  Sundries 

Cash 

Bills  Receivable 

To  William  Hay,  to  close  account  . 
//   Profit  &  Loss 


500 


83015.75. 


Ship  Hudson,  Dr.     .     . 
To  Cash    . 


500 
500 


1500 
1515 


500 
1000 


75 


Bills  Receivable,  Dr. 
To  Bills  Payable 


31. 


Sundries,  Dr.  to  Bills  Payable 
Cash 


1200 


800 


3000 
15j75 


1200 


6       Profit  &  Loss 


TEACHER'S  EXAMINATION. 

2  Whv  ortiJt^r'^  '?  Broadway  ?-Repeat  Rule  VI. 
i'  S^  pred't  House  ,n  Broadway ?-Repeat  Rule  VII. 

4.'  wS  no^fredit'Ct'^^fs'-V?!'"  '^  '^^'^  P'^'*^  ^-'«»?-Repeat  Rule  IV. 
K   Whi  !:.4.        a\^L    K^"^^^'*^'  *'^«  amount  he  has  paid?— Repeat  Rule  TV 
th'LunkT    *  ^'"'  R^^ceivable,  Warden's  note  beLg  the  tlSng  deH^erl^  to 


73 


596 
3 


70 
30 


800 
600 


I  Ik 


Ir     t 


»t 


3 


NEW  YORK,  February  1,  1867. 


*Kecoivod  by  the  Ship  lloniUl,  Chase,  master,  from  Loiuloii,  Mdse.  p.  1. 15. 

2.  shipped  to  me  by  H.  Morris  by  my  order  and  tor  my  account,  auKnint- 

ini;  '^  Invoice,  due  in  Lt>ndon  lOth  April  next,  to  .         $S888.88 

Gave  my  bonds  to  the  Custom  House  ibr  duties  @  o  and  15  mos.    22l^L\22 

Paid  tVeiirht  in  Cash        ........         85. 


'Keeeived  from  K,  3Iorris,  by  the  Ship  Herald,  Chase,  master,  froni  Lon- 
don, 80  pipes  Port  Wine,  '^  Invoice  Hook,  £2000  sterling,  for  sale  on 
!      his  account. 
Gave  my  bonds  to  the  Custom  House  for  duties  @  3  and  (>  mos.  82222.22 


Paid  freight  in  Cash 


167.78 


5. 


Paid  Cash  for  Cooperage  and  Cartage  of  Morris*  Wines 


Sold  for  Cash  to  Jacob  Lorillard, 

120  gallons  R.  Morris'  Wines.     C.  S.  B.  1.     @  $3  ^  gallon 

=^  6. 


•Discounted  in  tlie  City  Bank  W.  Morris'  note  of  8800. 
Keceived  Cash  net  proceeds  .... 

27  days'  discount         ...... 

=-  -    9.  


8706.40 
3.60 


Sold  Wm.  Park  on  his  note  @  4  mos.,  endorsed  by  Warden  k  Bell, 
5  pipes  R.  Morris'  Wines,  p.  C.  S.  B.  1     . 


12. 


*  James  Carter,  who  lately  failed,  compounds  with  me  for  50  cents  on  the 

dollar  for  the  note  which  I  hold  against  him  due  yesterday. 
Received  a  new  note  endorsed  by  W.  Hay  for       .         .         .         .     $300. 
The  balance  is  lost 300. 


// 


Rec'd  Cash  of  T.  Edwards  on  account  of  his  note  due  this  day 

*  Shipped  by  the  Brig  Jersey,  Spencer,  master,  and  consigned  to  J.  Taylor 
&  Co.,  New  Orleans,  10  pipes  1200  gallons  R.  Morris'  Wines,  for  sale 
on  account  of  his  consignment.     C.  S.  B.  1. 

Paid  freight,  &c.,  in  cash     .         .         .         .         .         •         .         ... 

/y  


•Shipped  by  the  same  vessel,  consigned  to  J.  Taylor  &  Co.,  for  sale  on  my 

account,  3Idse.  from  store,  p.  Sales  Book         .         .         .         .     82760. 

Invoice  of  Table  Linens,  bo't  of  Wm.  Hay  on  acct.  @  3  mos.      .       1500. 

Freight  and  charges  paid  in  cash        ......  33. 


*  Shipped  by  the  same  vessel,  and  consigned  to  J.  Taylor  &  Co.,  by  their 
order  and  for  their  account,  an  Invoice  of  Tea  from  store,  p.  S.  B.  (due 
this  day)         .......*..     8600. 

Paid  Freight  and  Insurance  in  cash     ......         11. 

Commission  on  8600  at  5  per  cent,  is  .         .         .         .         .     830. 

Commission  for  effecting  insurance  '}  per  cent,  is  .         .         3.       33. 


1.  We  credit  Morris  only  for  what  we  get  into  debt  to  him — see  note  1.  p.  30. 

•2.  We  never  credit  any  account  for  the  invoice  of  a  consignment — see  Questions  21  and  28,  p.  41. 

3.  Bills  Receivable  was  debited  (Jan.  31),  therefore  we  must  now  credit  that  account. 

4.  Bills  Receivable  must  be  creditetl  for  the  am't  of  the  note  given  up ;  Profit  &  Loss  is  Dr.  for  the  loss. 

5.  The  first  of  these  shipments  is  a  re-consignment,  and  cannot  be  debited  to  any  account. 
The  second  is  an  adventure  of  our  own;  we  debit  shipment  to  N.  Orleans — Rule  XL,  p.  4L 
Ihe  third  being  shipped  by  Taylor  &  Co.'s  order,  and  on  account,  they  are  debited. 

74 


11106   10 


2390 
5 

360 


800 


2100 


600 


2000 


28 


4293 


644 


NEW  YORK,  February  1,  1867. 


1 
5 
4 
2 

7 
4 
2 

7 
2 

2 

7 

3 
2 
6 

3 

7 

3 
3 
6 


2 
3 


»  Merchandise,  Dr.  to  Sundries 
To  R.  Morris       .       . 
'/    Bills  Payable    . 
"   Cash    .... 


1:11106 


10 


'  R.  Morris'  Sales,  Dr.  to  Sundries   . 
To  Bills  Payable 
It    Cash 


2390 


R.  Morris'  Sales,  Dr. 
To  Cash 

Cash,  Dr.  . 

To  R.  Morris'  Sales 


5.         = 


'  Sundries,  Dr.  to  Bills  Receivable 

Cash 

Profit  and  Loss 


Bills  Receivable,  Dr. 
To  Morris'  Sales 


9. 


If. 


360 


*  Sundries,  Dr.  to  Bills  Receivable    . 
Bills  Receivable 
Profit  and  Loss      .... 


Cash,  Dr. 

To  Bills  Receivable 


796    40 
3  ,60 

2100 


7 
2 

7 
1 
3 
2 

8 
1 
2 

8 


»  Morris'  Sales,  Dr. 
To  Cash 


*  Shipment  to  New  Orleans,  Dr.  to  Sundries 

ToMdse 

n    Wm.  Hay 

'/    Cash 


"John  Taylor  &  Co.,  Dr.  to  Sundries     . 

ToMdse 

"    Cash 

>f    Commission      .... 


300 
300 

2000 


28 


4293 


TEACHER'S  EXAMINATION. 

1.  Why  not  credit  Morris  for  the  whole  $11,196.10  ? 

2.  Why  not  credit  Morris  for  this  invoice  as  well  as  that  in  the  last  entry? 

3.  ^hy  not  credit  Bills  Payable  as  we  did  with  2d  entry  Jan.  31st  ? 

for  $3W  ?  I^«ceivable  for  the  whole  |600  when  we  only  got  a  new  note 

^*  ^t^o^hem  ?^''  ^''^'^'''"  *  ^°'  *^''  *"  *^^*  *^'"^®  Bhipments-they  being  consigned 

After  this  set  is  posted  the  student  must  make  out  all  the  accounts,  accounts  of 

^JXiUZTr^T  ..Al^^'.^t^o"**"  the  notes,  orders,  drafts,  acceptances,  ani  bins 
of  exchange,  inserting  his  own  name  when  he  is  the  promisori  acceptor,  or  endorser 


75 


644 


3 


8888  88 
2222  22 
85 


2222  22 

167  78 


5 


360 


800 


2100 
600 


2000 


28 


2760 

1500 

33 


600 
11 
33 


'','• 


I 

I 


i: 


11!^ 


m  •  • 


NEW  YOBK,  February  18, 1867. 


*  Received  from  T.  Edwards  for  the  balance  of  his  note  due  12th  instant, 
an  invoice  of  Flour  "^Q  I.  B.  2 


n 


Insured  my  house  in  Broadway,  for  one  year,  in  the  Sun  Office,  for 
810,000,  @  2  perct.;  policy  $1.     Amt.  paid  in  cash 


*  Insured  in  the  New  York  Office,  $12,000  for  one  year  on  my  stock  of 
mdse.  in  my  store  in  Front  street,  @  li  "^  ct. ;  policy  $  1.  Amt.  paid  in 
cash  ,         . 


•Pd.  R.  Morris'  Bill  on  me  at  sight  for  $4440,  in  favor  of  R.  Banks, 

In  Mdse.  ^  Sales  Book  3 200. 


R.  Morris'  goods  f  C.  S.  B.  1 
Cash 


840. 
3400. 


Pd.  my  note  due  this  day  in  favor  of  W.  Bayard  Co.  for  1600, 

In  R.  Morris'  Wines  f  C.  S.  B.  1,  sold  him  9th  inst.  $1080. 

Mdse.  "^  Sales  Book  3 500. 

Cash  for  balance  . • 20. 

, 20. ^^ 


*  Accepted   R.  Morris'  Bill  on   me   at    10  days'  sight   in  favor  of  R. 
Banks,  for  ........... 


Refunded  cash  to  R.  Banks  for  6  galls,  overgauged  Wine  belonging  to 
R.  Morris,  sold  him  18th  inst.,  twenty-one  dollars.     R.  Banks.* 

==        25.  =========== 


Collected  for  R.  Morris  Ryan  &  Dale's  draft  on  Barclay,  Fox  &  Co.,  for 

$2000.     Net  Proceeds  Rec'd  in  Cash 1995. 

Also  my  commission  on  same,  i  "^  ct.  .         .         .         .         5. 


•  Lent  Cash  to  Capt.  John  Bowline  on  the  Bottomry  Bond  of  his  Ship,  the 
Hunter,  payable  with  20  "^  ct.  prera.  to  my  agent,  R.  Morris,  in  London, 
10  days  after  the  arrival  of  his  Ship  in  England  .         .         .         . 


•  Bought  for  Cash  of  Baker  &  Fox  their  Bill  at  60  ds.  on  R.  Morris  for 


£1000  Sterling 

Premium  on  the  same,  8  ^  ct. 


4444.44 
355.56 


'  Found  in  the  Park  a  purse  containing  eighty  half  eagles,  which  I  have 
advertised  but  no  owner  has  claimed  it         ...... 


1.  I  have  here  followed  the  usual  practice ;  but  I  prefer  the  course  reccommended  in  Note  3,  page  48. 

2.  I  have  made  it  a  rule  to  debit  Merchandise  only  for  the  cost  and  charges  of  bringing  it  into  store 
and  for  manufacturing.    The  cost  of  keeping  the  store  I  carry  to  Expense  or  Profit  and  JL^ss. 

3.  We  here  pay  this  amount  fob  Morris ;  it  is  the  same  as  paying  it  TO  him ;  he  gets  into  our  debt  and 
is  therefore  Dr. 

•i.  We  should  never  debit  a  consignment  account  for  any  thing  but  the  charges.    All  advances  made 
on  acct.  of  it  should  bo  debited  to  the  owner's  private  acct. — Rule  X.,  Note  29,  p.  41. 

5.  This  is  a  Bill  Receivable,  that  account  is  therefore  Dr. 

6.  We  can  only  debit  Bills  Receivable  for  the  face  of  the  bill,  not  fur  what  it  costs. 

7.  We  debit  property  for  its  value  when  it  becomes  ours,  whether  it  costs  us  any  thing  or  not. 

•  This  is  BanKs'  signature,  making  a  receipt  of  the  entry. — See  Note  5,  p.  12. 


t 


76 


1000 


201 


181 


4440 


1600 


2500 


21 


2000 


2000 


4800 


400 


NEW  YORK,  February  18,  1867. 


1       Mdse.,  Dr. . 

3  ,  1  To  Bills  Receivable 


4       House  in  Broadway,  Dr. 
2      To  Cash . 


6    *Profit&Loss,  Dr. 
2      To  Cash 


5 
1 
7 
2 

4 
7 
1 
2 

5 
4 

7 
2 

2 
5 

8 

3 
2 

2 
3 
6 

2 
6 


'R.  Morris,  Dr.  to  Sundries 
To  Mdse. 
//   Morris'  Sales 
//   Cash  .... 


Bills  Payable,  Dr.  to  Sundries 
To  R.  Morris'  Sales 

//   Mdse.  0 

n   Cash  # 


*  R.  Slorris,  Dr.     . 
To  Bills  Payable 


20. 


R.  Morris'  Sales,  Dr. 
To  Cash 


Cash,  Dr.  to  Sundries 
To  R.  Morris  . 
/'   Commission    . 


25. 


**  Bills  Receivable,  Dr. 
To  Cash      . 


Sundries,  Dr.  to  Cash 
•Bills  Receivable 
Profit  &  Loss 


'Cash,  Dr.  . 

To  Profit  &  Loss 


1000 


201 


181 


4440 


1600 


2500 


21. 


2000 


2000 


4444  44 
355  56 

400  , 


1000 


201 


181 


200 

840 
3400 


1080 

500 

20 


2500 


21 


1995 
5 


2000 
4800 


400 


2. 
3. 

I  4 

! 
15. 

6. 

7. 


TEACHER'S  EXAMINATION, 
^use^the  Riif  «?"'  P^'?  l>y  i"?talments,  is  it  not  liable  to  complicate  and  coa- 
^  hy  debit  Morris  ? 

What  18  a  Bottomry  Bond?    Repeat  Question  5,  Rule  IX    d  40 
n  ny  debjt  Cash  for  this,  seeing  it  cost  us  nothing? 


77 


Ut' 


fi. 


\k 


li 


m 


I. 


NEW  YOBK,  February  28,  1867. 


»ISold  for  Cash,  at  8|   per  cent,  prem.,  to  R.  Irvin  &  Co.,  Baker  & 
Fox's  Bill  on  R.  Morris  for  £1000  sterling,  equal  to      .         4444.44 
Premium  8*  per  cent 377.7g    4822   22 


*Sold  Warden  &  Bell,  by  C.  Murray,  Broker,  my  Bill  of 
Exchange,  @  60  days'  sight,  on  R.  Morris,  for  £1000  stg. 
Prem.  on  the  same  8^  per.  ct.  .  8377.78 

Murray's  Brokerage  i  per  ct.  off     .       12.06   gain   365.72. 

Add  33  days'  Int.  included  in  Warden  &  Bell's  note     11^^ 

Whole  gain  on  the  transaction 

Received  in  payment 

Warden  &  Bell's  note         .... 

33  days'  Interest  included       .         . 

Cash  for  the  balance    ..... 


4444.44 


376.72    4821   16 


2000. 
11. 


2011. 
2810.16 


4821.16 


*  At  the  fire  which  broke  out  in  my  store  in  Front  Street  yesterday, 
goods  were  destroyed  amounting,  *^  Sales  Book,  3,  to       . 

March  1. —  ■  


1st  Co.  William  Hay  and  myself  have  entered  into  an  arrangement  for  the  pur- 
pose of  buying  and  selling  Merchandise  on  joint  account,  each  partner's 
interest  in  such  speculations  to  be  equal.     He  now  advances  me  cash 


369U 


to  be  invested  under  this  arrangement 


•William  Hay  has  sent  to  my  store  for  sale  on  joint  acct. 

5  pipes,  900  gals.,  Madeira  Wine   .         .         .         .         @81.  $900. 
My  half,  due  June  1st,  is      .         .  ... 

2.  ^^-  -  '  = 


2500 


*Bo't  of  James  Walker  on  Book  acct.,  @  30  days,  for  the 
joint  acct.  of  myself  and  Wm.  Hay,  20  tierces,  24,000  lb.. 

Rice @  5  c. 

W.  Hay's  half,  due  April  1st,  is  .         .       $600. 

My  half,       n       »        n      n   ia       ,         .         .     600. 


$1200. 


Received  Cash,  freight  of  the  Ship  Hudson 


450 


tt 


Being  appointed  Agent  for  the  Ship  Roscoe,  I  have  purchased  of  Capt. 
Manly  i  of  the  vessel  for  $5000.     Sold  him,  in  paynient — 
5  pipes,  900  gals.,  1st  Co.  Wine 
20  tierces,  24,000  lb.,  1st  Co.  Rice 

Balance  paid  in  Cash 


1200 
1850 


@  81.i      $1200. 
@  7  cts.      1680. 


2880.' 
2120. 


4. 


*  Paid  Cash  for  Disbursements  of  Ship  Roscoe 

Passed  my  note  at  4  mos.  for  her  Ins.  on  20,000  @  2  p.  ct. 


850. 
400. 


5000 


1250 


1.  Here  we  sell  two  bills,  both  drawn  on  Morris.  Bills  Receivable  is  credited  for  the  first,  that  account 

having  been  debited  when  we  received  the  bill  and  gave  value  for  it— note  6,  p.  76.    We  credit i  ■ 
Morris  for  the  other  bill,  because  we  have  drawn  it  ourselves,  and  therefore  get  into  his  debt. 

2.  See  Day  Book,  February  18,  and  Sales  Book,  February  28.    We  debit  the  Insurance  OflBce,  as  we 

hold  it  responsible  for  this  amount. 

3.  We  are  not  responsible  to  Hay  for  any  thing  more  than  our  own  share — 5*50. 

4.  Here  we  debit  Hay  for  his  half,  because  he  becomes  owner  of  half  the  purchase,  and  has  not  paid 

us  for  it.  ,        .     J  .XL  XV         X    /. 

6.  The  advances  we  make  as  Agent  for  the  vessel,  must  not  be  mixed  up  with  the  cost  of  our  own 
share  of  her:  therefore  we  must  have  two  separate  accounts. 


'ill 


2 
3 
6 


3 
2 
5 
6 


7 
3 
9 


9 

9 


NEW  YORK,  February  28,  1867. 


Cash,  Dr.  to  Sundries 
»  To  Bills  Receivable    . 
/•  Profit  &  Loss    . 


Sundries,  Dr.  to  Sundries  . 
Bills  Receivable     . 
Cash         .... 
» To  R.  Morris 
//   Profit  &  Loss 


t 

•  • 

•       • 

•  • 

! 

4822 

22 

$4821.16 

•       * 
•       • 

2011 
2810  16 

4444   44 

377   78 


8     '  New  York  Insurance  Office,  Dr. 


To  Mdse. 


Mar.  It 


3690 


4444   44 
376   72 


3690 


Cash,  Dr 2500 

3  I     To  Wm.  Hay [j 


9        1st  Co.  Sales,  Dr.  . 
3     » To  Wm.  Hay    . 


2500 


450 


2. 


Sundries,  Dr.  to  James  Walker 
Wm.  Hay 

*  1st  Co.  Sales 


2        Cash,  Dr. . 
,  6  ,     To  Ship  Hudson    . 


600 
600 


1850 


450 


1200 


1850 


ft 


Ship  Roscoe  my  i.  Dr.  to  Sundries     . 
To  1st  Co.  Sales     .         .         .         . 
//   Cash 


4. 


5000 


9     *  Ship  Roscoe  &  Owners,  Dr.  to  Sundries  . 

2       To  Cash 

4         n  Bills  Payable 


TEACHER'S  EXAMINATION 

1.  Why  is  Bills  Receivable  account  not  credited  alike  for  both  these  bills  ? — Repeat 

Rule  IX.,  p.  40. 

2.  Where  are  the  particulars  of  this  entry  for  holding  the  insurance  oflBce  respon- 

sible for  this  amount? 

3.  Why  should  not  Hay  have  a  credit  for  the  whole  amount  of  goods  which  he  put 

into  my  hands  ?— Repeat  Rule  XII.,  and  note  8,  p.  43. 
4  Why  not  debit  Sales  in  Co.  for  the  whole  amount? 
5.  Why  not  debit  the  account  of  Ship  Roscoe  my  i  for  the  amount? 


2880 
2120 


1250 


850 
400 


79 


t 


\ 


I 


r 


6 


NEW  YORK,  March  4,  1867. 


Paid  Cash  to  the  City  Bank  for  my  note  due  to-morrow  in  favor 
of  W.  Morris 

Also  paid  Cash  to  the  Merchants'  Bank  for  my  note  in  favor  of 
J.  Warden .         ......... 

5. 


800. 
600. 


■  Sold  E.  Banks  5  hhds.  Havana  Sugar,  viz. — 
1050,  1150,  1000,  1200,  1100     5500  lbs. 
Less  Tare,  10  per  cent.  550    4950  lbs.,  @  10  cts.     495. 

5  chests  Y.  H.  Tea,  viz. — 

80,  85,  75,  90,  70   .         .         .     400  lbs.  net.        @  90  cts.     360. 

6  ps.,  20^  19?,  20,  21,  19,  20,     120  yds.  S.  F.  Cloth,  @    $10.    1200. 
6  doz.  pair  best  1^4  Bath  Blankets         .         .         .  @  $120.      720 


83.      450. 

.75    15. 

$9.        90. 

50    24. 

1. 


150  pieces  3-color  Merrimac  Prints 
20  yds.  Super  Saxon  Flannel    . 
10    //     Finest  Green  Broadcloth 
16     //     Fancy  Fig'd  Satin 

2  Packing  Cases    . 

Received  in  Payment  my  acceptance  for  R.  Morris,  due 

this  day 2500. 

Banks'  Order  at  sight  on  J.  Walker,  which  I  deposit  on 

acct.  with  Walker     . 600. 

Cash  for  Balance 255.  $3355. 


Received  Cash  for  Freights  and  Passages  "^  Ship  Roscoe 


•1st  Co.  Mdse.  being  all  sold,  I  render  Wm.  Hay  acct.  and  close  the  sales 

as  follows :— Total  Sales,  $2880.     My  2*  Commission  is 
Storage    .......... 

W.  Hay's  half  net  proceeds  due  this  day  is        .         .         . 
My  net  gain  is  ........ 

12. 


72. 

8. 

1400. 

350. 


Received  from  J.  Taylor  &  Co.,  New  Orleans,  acct.  sales  of  Morris'  Wines. 
Net  proceeds,  $4500,  for  which  I  have  received  their  bill  @  60  days 
on  Barclay,  Hope  &  Co.,  which  is  accepted         ..... 


•  Received  from  J.  Taylor  &  Co.,  N.  Orleans,  acct.  sales  of  my  consignment 
■^  Brig  Jersey.    Net  proceeds,  $5800,  for  which  received  their  Invoice 


of  Sea  Island  Cotton,  amounting  to 
Paid  freight  and  charges  on  the  same  in  cash 


5800. 
180. 


Taken  to  my  account  the  remaining  9  pipes,  1080  galls.,  Morris'  Wines, 

@  ^S'^  gall.j  as  cash  in  2  months 

—  ' n  ~~ 

Received  from  the  New  York  Insurance  Office  Cash  in  full 


Shipment  to  N.  Orleans  closes  with  a  gain  of 


1.  This  entry  shows  how  a  sale  must  appear  on  the  Day  Book  when  no  Sales  Book  is  kept. 

2.  1  have  to  account  to  the  Ship  Roscoe  and  Owners  for  this  sum,  therefore  I  credit  their  account. 

3.  The  total  sales  per  Ledger  is  ;S2880,  less  charges  $80  =  $2800,  half  of  which  is  Hay's  share,  ;?1400. 

Our  half  first  cost  per  Ledger  was  $1050,  and  our  share  net  proceeds  being  $1400,  leaves  our  gain 
$350. 

4.  Taylor  &  Co.  having  remitted  the  proceeds  of  the  sales,  the  transaction  is  not  carried  to  their  account. 

We  have  only  to  debit  the  thing  received,  and  credit  the  account  that  brought  that  thing  in. — Rule 
V.  and  TIL,  p.  39. 
6.  Always  close  property  accounts  when  all  is  sold,  as  we  do  with  personal  accts.  when  we  settle  with  the 
parties. — Note  4,  p.  70.    The  gain  or  loss  must  appear  iu  the  Profit  &  Loss  acct.,  for  reasons  given 
Mdse.  acct. — Note  4,  p.  33. 


80 


1400 


3355 


1800 


1830 


4500 


5980 

3240 
3690 
1507 


NEW  YORK.  March  4  1867. 


4 
2 


1 
4 

7 
2 


2 
9 


9 
8 
6 
3 


3 

7 


1 
7 
2 


1 

7 


2 

8 


Bills  Payable,  Dr. 
To  Cash    . 


'  Sundries,  Dr.  to  Merchandise 
Bills  Payable     . 
James  Walker 
Cash 


1400 


Cash,  Dr.      . 
'  To  SJjiip  Koscoe  &  owners  . 


1st  Co.  Sales,  Dr.  to  Sundries,  to  close  account 
To  Commission  .... 

//   Profit  &  Loss  $8  and  $350    *    .    ' 
•  ''    W.  Hay •         • 


12. 


Bills  Receivable,  Dr. 
To  Morris'  Sales 


Merchandise,  Dr.  to  Sundries 
*  To  Shipment  to  New  Orleans 
tt   Cash 


2500 
600  j 
255  I 


1800 


1400 


3365 


1830 


1800 


4500 


72 

358 

1400 


4500 


Merchandise,  Dr. 
To  Morris' Sales    . 


6980 


7 

6 


Cash,Dr 

To  New  York  Insurance  Office,  to  close  account  * 


3240 


3690 


•Shipment  to  New  Orleans,  Dr.,  to  close  account  . 
lo  Profit  &  Loss    . 


TEACHER'S  EXAMINATION. 

2  Whv  Si'sMn  pP*'"**'"'*^'  ^^^^°  '''  ^^^  ^^y  Bo<^k  Entry? 
t  „  "J  9^^^^  ,Shjp  Roscoe  and  owners  for  this  sum  ? 

Ques«oT5,?a%%?.*''  ""''  ^'''''^'  ^"^  "^  ^-^^-^  g-°  found  here?    Repeat 

t'  wSv  =h?'i!,^.uP'"®°*  *°  N®^  ^•'^^'^"8  for  this  $5800? 
6.  Why  should  this  account  be  debited  for  this  sum? 


6800 
180 


3240 


1507 


3690 


1607 


f 


81 


m 


■il 


w* 


I 

I; 

'■  i 

L 

r 


1 1 


I 


NEW  YORK,  March  12,  1867. 


1  Morris'  Consignment  being  all  sold,  I  render  him  f  5^^^°,^  ^^closm^^^ 
sales  as  follows  :-Total  sales  $12,120,  charges  posted  to  date,  ^2444^ 
My  commission  on  the  sales  @  5  f  cent.,  is     .         .         •         •     ''O^^- 

Storage  and  advertising  .         •         ',  ^^ Qft^2 

Net  proceeds  at  Morris' credit,  due  2d  May      .         .         •         •     ^^± 


967«i 


«A8  Executor  of  the  estate  of  the  late  A.  Lenox  I  have  received  possession 

of  the  following  property  for  the  use  of  his  heirs,  viz. 
,      Cash  in  deposit  in  the  Manhattan  Bank  ....       ^-^J^  • 

!  Notes  in  hand,  No.  15  and  16,  ^  Bill  Book  ....  170U. 
House  and  lot  49  Cedar  Street,  valued  at  ....  ;J^"^^- 
100  Shares  City  Bank  Stock  ....     10000.    dlZUU 


1%. 


•James  Carter's  Note  for  S300  endorsed  by  W.  Hay,  fell  due  in  my  hands 
yesterday  and  remaining  unpaid,  I  value  the  same  in  account  with  Hay 


as  cash  due  this  day 


Pd.  Cash  for  A.  Lenox's  Note  in  the  Manhattan  Bank 

-  17.  — 

*  James  Day's  Note  for  6500  falls  due  in  my  hands  to-day. 
Rec'd  in  payment  his  new  Note  @  60  days  for    .         .         • 

1         9      Cash  for  the  balance ^^^- 

63  days'  interest  on  new  Note  .         •         '^-^^ 


300 
2500 


400. 
104.20 


Paid  Cash  Attorney's  fees  for  Estate  of  A.  Lenox 
»  n        It      Insurance  of  house  49  Cedar  Street 

20. 


10. 
160. 


504   20 


170 


'Received  H.   Pamelas  Note  @  60  days  for  balance  due  the  Estate  of 
A.  Lenox 


// 


II 


1340 


•W.  Hay  has  put  into  my  store  for  sale  on  joint  acct.  9  pipes  Wine  1080 

gallons _•  vv  '^  ' 

I  have  added  the  same  quantity  at  same  price  from  store        .         ^5-^"- 

S6480. 
My  half  is 

^=^=:==^  25. 

•Wm.  Hay  and  myself  have  bought  for  cash  on  joint  acct.  200  ^^^^^  Cot- 
ton, amounting  '^^  invoice  to    . ??»       • 

Each  partner  has  paid  his  own  share  in  cash         .... 


3240 


4500 


1   The  total  sales  were  $12,120,  less  the  whole  charges  $3068,  leaves  net  proceeds  $9052.-Form  IV. 

-f  r^:^^l^^^^^^l^^^^f^r^  ^L^r'CfiVrLoSis^r-edited  for  the 
t.  The  things  received  are  Dr.  to  the  things  delivered,  and  Interest  or  Profit  &  Loss  is  credited  lor  tne 

:^°  This  building  belongs  to  the  Lenox  Estate,  and  we  debit  it  for  what  we  expend  upon  it,  and  credit 

'"  rroMhe  re^'ons  given  in  Rule  XIL  neither  of  these  entries  affects  Hay's  acct.  in  our  Books. 


82 


NEW  YORK,  March  12,  1867. 


7 
8 
6 
5 

10 

2 

3 

10 

10 

3 
3 

10 
2 


3 
2 
3 
6 

2 

10 
10 

3 
10 

9 
1 

9 
2 


Morris'  Sales,  Dr.  to  Sundries,  to  close  acct. 

To  Commission 

'/   Profit  &  Loss 

^  //  R.  Moriis 


9676 


// 


*  Sundries,  Dr.  to  Estate  of  A.  Lenox 

Cash 

Bills  Receivable    .... 

House  49  Cedar  Street 

City  Bank  Stock   .... 


'  Wm.  Hay,  Dr. 
To  Bills  Receivable 


16. 


A.  Lenox  Estate,  Dr, 
To  Cash.       . 


1 
1  ■             i 
:  '                i 

606 

18 

9052 

1 

7500 

1700 

12000 

10000 

1 

31200 

it 

300 

1 

It 

300 

2500 

*  Sundries,  Dr.  to  Sundries 
Bills  Receivable.    . 
Cash 

To  Bills  Receivable 
//   Profit  &  Loss 


17. 


2500 


^504.20 


400 
I      104   20 


4J 


// 


Sundries,  Dr.  to  Cash 
^Estate  of  A.  Lenox    . 
House  49  Cedar  Street 


Bills  Receivable,  Dr. 
To  Estate  of  A.  Lenox 


—       20. 


tt 


» 1st  Co.  Sales  Dr. 
To  Mdse.      . 


25. 


« 1st  Co  Sales  Dr. 
To  Cash 


10 
160 

1340 


3240 


4500 


500 
4  20 

170 


1340 


3240 


4500 


TEACHER'S  EXAMINATION. 

o  S?7  ^°  ^-t  ^^^^^  net  proceeds  due  Morris  hero?— Repeat  Quest.  26.  p.  41. 

2.  Why  credit  the  Estate  for  all  this  property  ?  *»       vt    ou  «,  p.  tx. 

3.  Why  debit  Hay  for  this  note  ? 

4.  Why  debit  Bills  Receivable  and  Cash,  and  credit  Bills  Receivable,  and  Profit 

&Loss,  all  m  the  same  entry?— Repeat  Rules  V.  and  VIH 
6.  J^hy  not  debit  Estate  of  Lenox  for  this  $160,  as  this  house  belongs  to  it? 

Xeal  Ru?o  XII?;'S:  ""'"'  '"  '^^'"'  '''^'^"°*  '°  '''''''  «^  ''''''  ^^««'- 


8S 


8 


h 


•! , 


f-^ 


!     I 


b> 


NEW  YOBK,  March  28,  1867. 


>  Placed  to  1st  Co.  Account  500  bbls.  Flour  from  store 
William  Hay  has  sent  in   300  bbls. 

My  half  is 32000. 

Rec'd  Bal.  of  Wm.  Hay's  share  in  cash         500. 


$2500. 
1500. 


=  31. 


'  Paid  Cash  to  Charlotte  Lenox  on  acct.  of  her  legacy 


*  Paid  Cash  to  Robert  Lenox  on  acct.  of  his  legacy 
==     April  1.    == 


Lent  Cash  to  James  Walker  on  his  note  @  6  months,  endorsed  by  War- 
den &  Bell,  and  dated  the  6th  instant,  for  .         .         .  2000. 
6j%  months'  Interest  included  in  the  note     ....  ^^« 


2500 


500 


800 


5. 


Shipped  by  the  Columbia,  Gray,  Master,  consigned  to  Baring  &  Co., 
Liverpool,  for  sale  on  my  account — 

40  bales  Cotton  from  store 2500. 

100  bbls.  Flour  from  do @  85     500^  3000. 

4500  bush.  Wheat  @  $1,  Bought  of  P.  Nevius  on 

Barclay,  Hope  &  Co.'s  acceptances         .         .         .      4500. 

Shipping  Expenses  paid  in  Cash 348.55 

Passed  my  note  to  the  Marine  Insurance  Co.  for  pre- 


2063 


mium  '  on  $8010  @  2  per  ct.  (covering  the  pre- 
mium and  policy),  Policy  $1.25 


161.45      8010 


*  Shipped  by  the  Brig  Cherub,  consigned  to  Hartwell  &  Thorndike,  Bos- 
ton, by  order  and  for  account  of  R.  Morris,  London — 
240  bbls.  Mess  Pork,  Bought  of  Wm.  Hay  @  30  days,  due 

May  5th       . $2000. 

Paid  Shipping  Expenses  in  Cash 
Passed  my  note  @  30  days  for  Insurance 
Commission  on  purchase  of  $2000  @  5  per  cent 
i  per  ct.  for  effecting  Insurance     . 

-^^^^  10.         -= 


100 
5 


20. 
41.25 

105. 


*  Paid  Cash  for  honor  of  John  Taylor  &  Co.,  their  draft  on  Sidney  Wood 
&  Co.  being  Protested  for  non-payment. 

Bill  $1200,  Protest,  &c.,  $4 1204. 

My  J  per  ct.  Brokerage       .......  6. 


Received  from  the  Executors  of  my  father's  Estate  50  shares  Merchants* 
Bank  •  Stock,  valued  at 


1.  Hay  does  not  here  get  in  debt  to  us,  nor  we  to  him.    Therefore  we  have  no  entry  for  his  acct. 

2.  These  persons  being  Legatees,  we  must  debit  their  private  accounts  for  all  payments  we  make  them, 

until  the  final  settlement.— Note  3,  Lenox  Kstate,  p.  110. 

3.  The  invoices,  shipping  expenses,  and  policy,  amount  to  $7849.80.    Then  98  :  100  : :  7849.80  :  $8010, 

the  sum  upon  which  to  cast  the  2  per  ct.  premium,  which  amounts  to  $1G0.20  +  7849.80  =  8010, 
thus  insuring  both  premium  and  policy  with  the  shipment. 

4.  Morris  gets  in  debt  to  us  for  this  amount,  therefore  he  is  Dr. — not  Hartwell  &  Thorndike. 

5.  We  were  not  obliged  to  pay  this  draft.    We  have  done  it  to  save  the  credit  of  our  N.  Orleans 

correspondents,  Taylor  &  Co. 

6.  We  might  credit  Profit  and  Loss,  but  such  additions  to  our  capital  belong  more  properly  to  Stock, 

for  reasons  given  in  note  3,  page  30. 


84 


2166 


1210 


5000 


25 


NEW  YORK,  March  28,  1867. 


8 


1 

9 
2 


2 
10 


*  Sundries,  Dr.  to  Mdse.  . 
1st  Co.  Sales     . 
Cash     .... 


31. 


Sundries,  Dr.  to  Cash 
'  Charlotte  Lenox     . 


2000 
500 


10  *  Robert  Lenox  . 


3 
2 
6 


7 
1 
3 
2 
4 


=-^  AprU  1. 

Bills  Receivable,  Dr.  to  Sundries 

To  Cash 

'/   Profit  &  Loss    . 


6.        = 


'  Shipment  to  Liverpool,  Dr.  to  Sundries 

To  Mdse 

V  Bills  Receivable   .... 

"   Cash 

//   Bills  Payable        .... 


500 

800 


2063 


2500 


1300 


8010 


2000 
63 


*  R.  Morris,  Dr.  to  Sundries 

3  I    To  Wm.  Hay    . 
2        //   Cash 

4  tf  Bills  Payable 
8        'f   Commission 


8 
2 

8 


4 
1 


2166   25 


3000 

4500 

348 

161 


I 


10. 


*  John  Taylor  &  Co.,  Dr.  to  Sundries 

To  Cash 

'/   Commission .... 


Merchants'  Bank  Stock,  Dr. 
•  To  Stock  .... 


1210 


TEACHER'S  EXAMINATION. 

o  ^^  ^^  t^^???u^°t"'^  ^^^^  ^°^  ^*y'«  account?    Repeat  Rule  XII.,  p.  43. 
2.  Why  not  debit  the  Estate  of  Lenox,  these  being  payments  to  the  Legatees? 
A    S?.         ^^  "°"  **^®  amount  upon  which  to  cast  the  premium  ? 

to  t^eJ^r*"^^"  *  Thorndike  not  debited  for  these  goods,  they  being  shipped 

5.  Why  should  we  pay  this  draft,  it  being  drawn  on  Sidney  Wood  &  Co.' 
t.  Why  not  credit  Profit  &  Loss  for  this  $5000  ? 


5000 


2000 
20 

41  \2'i 
105 


55 
45 


1204 
6 


5000 


85 


9 


f. 

f 


NEW  YORK,  April  10,  1867. 


Accepted  supra  protest  for  the  honor  of  J.  Taylor  &  Co.,  their  bill  at 

10  days,  on  Sidney  Wood  &  Co.,  for  $600;  protest  $1       .  $601. 
My  i  ^  cent.  Brokerage — due  23d  inst ^- 


'  Shipped  by  the  Cambria,  Adams,  master,  and  consigned  to  R.  Morris, 
London,  for  sale  on  his  acct.,  J.  Taylor  &  Co.,  and  myself,  each  h 
60  Bales  Sea  Island  Cotton  from  store 
100  Barrels  Flour                    from  do.        @  $6 
200  Bales  1st  Co.  Cotton    .... 
Shipping  Expenses  paid  in  Cash 
Passed  my  Note  @  3  mos.  for  insurance     . 
My  commission  on  $14400  @  2*  ^  ct.  is 
„  II  Effecting  Insurance  \  "^  ct. 

J.  Taylor  &  Co.'s  J  is  ^      4980.33 
R.  Morris'  '/  4980.33 

My  (2d  Co.)  //  4980.34    $14941.     Due  this  day. 


$4000. 
^00.  4600. 

"T     9500. 

300. 

145. 
$360. 
36.    396. 


604 


•  Shipped  by  the  Briir  Tribune,  Speer,  master,  and  consigned  to  C. 
Hartwell,  Boston,  18  Pipes  Wine  belonging  to  1st  Co.,  amounting 
^  Invoice  to  $6480.     My  half  is          ....    $3240. 
Paid  shipping  expenses  in  cash ^^- 

=:======       15.       


14941 


3300 


*  Shipped  by  the  Erie,  Truck,  master,  and  consigned  to  Baring  &  Co., 
Liverpool,  for  sale  on  1st  Co.  account, 

400  Barrels  Flour  from  store,  @  $6, $2400. 

150       //  //      put  on  board  by  Wm.  Hay,  @  $6,     $900. 

Wm.  Hay  passes  his  Note  for  insurance       .         .         •    165.     1065. 

I  have  paid  the  other  expenses  in  Cash       ....        1^3. 

My  half  is        .         .  1799. 

Wm.  Hay's  do.  is      .  1799.     $3598,  as  cash  this  date. 


3598 


^  Received  from  J.  Taylor  &  Co.,  of  New  Orleans,  invoice  of  100  Bales 
Cotton  shipped  to  London  on  the  2d  inst.,  consigned  to  R.  Morris 
for  sale  on  their  acct.,  Morris'  acct.,  and  on  my  acct.,  each  ^.  || 

My  (2d  Co.)  i  due  in  cash  2d  inst.,  is 


20. 


Received  Cash  amt.  of  Warden  &  Bell's  note  due  31st  ultc, 
20  days'  interest  on  the  same        .... 


u 


2011. 
6.70 


In 


.^ ,  p      «  Received  from  J.  Walker  invoice  of  sugars  amounting  to 
.Mi  KjO.  ^^  j^^g  purchased  to  sell  on  our  joint  acct.     My  half  is 


84000  which 


1600 


2017    70 


2000 


1.  This  means  accepting  after  protest— after  Sidney  Wood  &  Co.  refused  to  accept.    The  bill  is  then 

in  the  same  situation  as  that  in  Note  5,  last  page,  and  if  not  protected  here  mil  return  under 
damages  against  our  New  Orleans  correspondents,  Taylor  &  Co.  We  of  course  debit  them  for 
the  amount. — Form  XXI.,  p.  120.  ,  ., ,    * 

2.  We  have  paid  for  the  whole  shipment,  and  Taylor  k  Co.  and  Morns  are  each  responsible  to  us 

for  their  respective  shares  from  this  date.  . 

3.  This  is  part  of  the  ist  Co.  property  shipped  to  another  market,  and  our  share  is  charged  to  a  new 

acct. :  therefore  Ist  Co.  Sales  must  be  credited  for  our  share.  ,.     t* 

4.  We  debit  Ilay  for  his  share  of  the  adventure,  and  credit  him  for  what  he  has  paid  upon  it.    It 

would  havo  been  equally  correct  to  have  debited  him  for  the  balance  only.— Note  4,  p.  l8. 
6.  We  credit  Taylor  &  Co.  for  our  share  of  this  adventure  because  they  have  paid  the  amount  for 

us,  and  w»'  still  owe  them  for  it. 
(J.  We  call  this  an  adventure  because  we  do  not  manage  the  sales. 


8 
4 
S 


8 

5 

11 

1 

9 

2 

4 
8 

11 

9 
2 


11 
3 
1 
3 

2 

11 

8 

2 
3 
6 

11 
7 


NEW  YORK,  April  10,  1867 


*  John  Taylor  k  Co.,  Dr.  to  Sundries 
To  Bills  Payable 
//    Commission      .... 


'  Sundries,  Dr.  to  Sundries    . 
J.  Taylor  k  Co.     . 
R.  3Iorris 

2d  Co.  Shipment  to  London    . 
To  Mdse.  .... 
//    1st  Co.  Sales    . 
'/    Cash     .... 
'/   Bills  Payable    . 
I'    Commission  . 


// 


'  1st  Co.  Shipment  to  Boston,  Dr.  to  Sundries 

To  1st  Co.  Sales 

'/   Cash 

=  15. 

Sundries,  Dr.  to  Sundries 
*  1st  Co.  Shipment  to  Liverpool 

Wm.  Hay 

To  Mdse 

'/   Wm.  Hay     .         .         .         . 
»   Cash 


2d  Co.  Shipment  from  ^N^.  Orleans  to  London, 
'' To  J.  Taylor  &  Co 

20. 


Dr. 


Cash,  Dr.  to  Sundries    . 
To  Bills  Receivable    . 
//    Profit  and  Loss 


*3d  Co.  Adventure,  Dr. 
To  J.  Walker 


4941 


$3598 


604 


601 

3 

4980 

33 

4980 

33 

4980 

34 

■ 

4600 

9500 

300 

145 

396 

3300 

1 

3240 
60 

1799 

1799 

2400 

1065 

133 

1600 


2017  70 


2000 


1600 


2011 
6  70 


2000 


TEACHERS    EXAMINATION. 

1.  What  does  accepting  supra  protest  mean? 

2.  Why  debit  Taylor  &  Co.,  and  Morris,  for  their  shares  at  this  time?— Repeat  note 

O,  p.  -io.  '^ 

?*  Sl*^' ^•''  TT^  ^?-  ^i^'l^  credited  for  this  amount,  seeing  the  goods  are  not  yet  sold? 
4.  Why  IS  Hay  both  debited  and  credited  in  the  sjime  entry  ? 
«   T^^^  ^^^'^^'*  Taylor  &  Co.,  seeing  we  have  not  received  any  thing  from  them? 
6.  Why  do  \vc  call  this  an  adventure  ?— See  note  9,  p.  42. 


86 


87 


{■ 


Ji 


» 


10 


NEW  YOBK,  April  20,  1867. 


'  Received  by  the  Vixen,  Chase,  Master,  from  R.  Morris,  London,  40  bales 
Brussels  Carpeting,  amounting  "^  Invoice  to  £2700  sterling,  consigned 
to  me  for  sale  on  2d  Co.  account.     My  i  is  £900,  due  10th  instant, 
equal  to       ........         •  S4000. 

Gave  my  bonds  @  6  mos.  to  the  Custom-House  for  duties      .     3000. 
Paid  Freight  and  other  charges  in  Cash    ....  185. 

22.         ^===.== 


'  Paid  my  note  in  favor  of  Capt.  Rivers,  which  has  lain  over  under  protest 
since  the  18th  instant,  for      .....         .         S8000. 

4  days' Interest,  $5.33,  protest,  &c.,  $1.72      ....  7.05 

Sold  him  on  account  800  bbls.  1st  Co.  Flour  @  $6    .         .         .  4800. 
Paid  the  balance  in  Cash     .......        3207.05 


8007.05 


•Received  Cash  from  W.  Hay  for  his  note  due  3d  inst. 
19  days'  Interest  on  same  $4.80,  postages  25 

^=  23.  


1515.75 
5.05 


Paid  Cash  for  J.  Taylor  &  Co.'s  draft  on  Sidney  Wood  &  Co.     Accepted 
by  me  on  the  10th  instant,  for    ........ 

==^  25.  = 


•Received  advice  from  R.  Morris  that  on  the  20th  ultimo  Capt.  Bowline 
cancelled  his  Bottomry  Bond  on  the  Ship  Hunter,  by  paying  Morris  the 
amount  on  my  account      ......  $2000. 

Also  the  premium  upon  the  same      .....  400. 

—  ------^  30.  -='-=~^     ■ 

•  Received  from  J.  Walker  account  sales  of  the  Invoice  of  Sugars  bought  by 
him  on  the  20th  instant;  net  proceeds  $5000. 

Myhalfis 


3d  Co.  Adventure  now  closes  with  a  gain  of 

May.l< 


•Rec'd  Cash  for  a  Quarter's  Rent  of  House  49  Cedar  St. 
«      5  per  ct.  dividend  on  City  Bank  Stock    . 
»      5  per  ct.         //        on  Merchants'     w  . 
K      Quarter's  Rent  of  House  44  Broadway  . 

=^  .-.^-  4,  - 


300. 
500. 
250. 
150. 


*  Received  Cash  Freight  of  Ship  Hudson 
Freight  and  Passage  money  of  Ship  Roscoe 


3500. 
4200. 


// 


•Paid  Cash  for  two  Bonds  to  the  Custom-House  for  $1111.11  each 


'  1.  We  are  only  accoantable  to  Morris  for  our  own  share  of  this  shipment. 

!  2,  We  can  never  debit  the  Bill  account  for  more  than  the  face  of  the  note — the  same  as  it  was  credited. 

3.  If  we  credit  the  Bill  account  for  any  more  than  it  was  debited  when  the  note  was  received,  it  will 

throw  the  acconnt  that  much  out  of  balance. 

4.  R.  Morris  gets  in  debt  to  us  for  the  amount  he  acknowledges  to  have  received  for  us. 

f.  We  credited  him  for  our  share  of  the  purchase  money  when  he  bought  the  goods ;  now,  as  he  has  sold 
the  property,  and  got  our  share  of  the  net  proceeds  in  his  hands,  we  debit  him. 

6k  These  different  accounts  must  have  credit  for  these  sums,  because  they  have  brought  us  in  these 
amounts. 

7. 1  am  sole  owner  of  the  Hudson,  but  only  part  owner  and  agent  of  the  Roscoe. 

ft  These  are  Bills  Payable :  we  have  opened  no  Custom-House  bonds  account. 


8i 


7185 


8007  ,  05 


1520  80 


601 


2400 


2500 
500 


1200 

7700 
2222  22 


NEW  YORK,  AprU  20,  1867. 


10 


12       2d  Co.  Sales,  Dr.  to  Sundries 
5     1  To  R.Morris     . 


4 
2 


9 
2 


4 
12 


5 
3 

6 


7 
11 

11 
6 


12 

10 

10 

4 

4 

12 
6 

9 

4 
12 


7185 


If   Bills  Payable    . 
w    Cash    . 


22. 


Sundries,  Dr.  to  Sundries,  $8007.05. 
4;  » Bills  Payable  .... 

6       Profit  &  Loss     .... 

To  1st  Co.  Sales    .... 

»   Cash    ..... 


8000 
7  05 


2  I  Cash,  Dr.  to  Sundries 
3,  «  To  Bills  Receivable  . 
6       //   Profit  &  Loss    . 


23. 


Bills  Payable,  Dr. 
To  Cash 


25. 


1520 


4000 

3000 

185 


I 

I 


80 


*  R.  Morris,  Dr.  to  Sundries 
To  Bills  Receivable 
»   Profit  &  Loss 


30. 


»  J.  Walker,  Dr.      . 
To  3d  Co.  Adventure 


If 


3d  Co.  Adventure,  Dr.  (to  close  acct.)    . 
To  Profit  &  Loss        .... 

-^    May  1. 


601 


2400 


Cash,  Dr.  to  Sundries 

•  To  House  49  Cedar  Street,  Received  Rent 
fi    City  Bank  Stock  //  Dividend 

n    Merchants'  do.  n  do. 

"    House  44  Broadway  //  Rent 


2500 


500 


1200 


4800 
3207  05 


1515  75 
5  05 


601 


11 


'  Cash,  Dr.  to  Sundries         .... 
To  Ship  Hudson    .         .         .     Rec'd  Freight 
H    Ship  Roscoe  and  owners  // 


N 


7700 


8  Bills  Payable,  Dr. 
To  Cash  . 


Paid  my  two  Custom-house  bonds  J 


2222  22 


1.  Why  not  credit  Morris  for  the  whole  shipment?— Repeat  note  8,  page  43. 

2.  As  It  cost  us  $8007.05  to  take  up  this  note,  why  not  debit  the  Bill  account  for 

that  amount? 

3.  Why  not  credit  Bills  Receivable  for  the  $1520.80,  having  received  that  amount 

for  the  note  ? 

4.  Why  is  Morris  Dr.  ? 

6.  Why  debit  Walker  in  this  case? 

6.  Why  is  this  sum  credited  to  so  many  diflFerent  accounts? 

7.  Why  not  credit  the  Ship  Roscoe  and  the  Ship  Hudson  alike  here? 

8.  Why  not  debit  Custom-house  Bonds  account  ? 


89 


2000 
400 


2500 


500 


300 
500 
250 
1.50 


3500 
4200 


2222  22 


I 


I 


f^ 


11  NEW  YORK,  May  4,  1867. 


'Sold  Finlay  &  Co.  my  50  shares  Merchants'  Bank  Stock  @  110,  85500. 
Bought  of  them  in  part  payment  500  bbls.  Mess  Pork  for  the  joint  ac- 
^  count  of  myself  and  "VVm.  Hay    .      @  810    ....     5000. 
Received  the  balance  in  Cash 500. 

Wm.  Hay's  half  is   .         .         .         .     2500 

My  half  is 2500    $5000  as  cash  this  day. 


Merchants'  Bank  Stock  now  closes  with  a  gain  of 

= .  ,       -  8.  = 


Paid  Cash  for  my  notes  in  the  Insurance  Office 

and  . 


8161.45 
41.25 


Sold  James  Walker  my  Bill  at  60  days'  sight  on  R.  Morris  for  £1000 

sterling 4444.44 

8  per  ct.  Premium 855.56 

"Received  in  payment  Walker's  Receipt  for  the  balance  I  owe 


him 
Cash  for  the  balance 


13. 


.4200. 
4800. 


Delivered  to  James  Walker,  for  sale  on  our  joint  account,  an  Invoice  of 

Sugars,  amounting  to  83000.     My  half  is      ....     1500. 
Received  Walker's  Check  on  the  Bank  for  his  half  .         .         .     1500. 


Sold  Warden  &  Bell  120  pieces.  4250  yds.,  2d  Co.  Carpeting,  @  82,  88500. 
Received  in  payment  their  draft  at  30  days'  sight  on  J.  Landis  &  Co.,  'of 
New  Orleans,  for  87000,  at  2  per  ct.  disct.       .         .     6860. 

Cash  for  the  Balance 1640.     88500. 

2  per  ct.  Discount  on  the  Bill  is  ....  140. 

18.  


Sold  in  Austin  &  Co.'s  Auction   Room,   55  pieces  2d   Co.  Carpeting. 

Net  proceeds  "^  their  acct.  sales  83560. 

Received  in  payment  their  note  at  60  days,  for        .         .         .  S3000. 

Cash  for  Balance 560. 

I  take  the  remaining  55  pieces  to  my  account  at  market  prices  3814. 


// 


I  close  2d  Co.  Sales,  rendering  each  partner  a  copy  of  the  account. 
Total  Sales  815,874,  Charges  posted  83185. 

*My  Storage  is  83,  Advertising  810  ....       813. 

//    Commission  2h  per  ct.  on  815,874      ....       396.85 
R.  Morris's         i  net  proceeds  due  this  day  is  ...     4093.05 

J.  Taylor  &  Co.  i  do.  do 4093.05 

My  i  do.  4093  05 

My  i  first  cost  was       4000.        gain      .         .  93.05 


1.  Merchants'  Bank  Stock  is  the  thing  delivered,  and  is  therefore  credited. 

2.  We  debit  Walker,  becanse  we  get  out  of  his  debt  for  this  amount.— See  Led.,  p.  107. 

3.  The  rule  is  always  to  debit  or  credit  a  bill  for  its  face — not  for  what  it  passes  in  payment. 

4.  We  dfdact  the  whole  charges,  §3594.85,  from  the  total  sales,  $15,874,  which  leaves  $12,279.15 

ceeda,  divided  by  3  gives  each  partner's  share  $4093.05.— See  Form  V.,  p.  118. 


90 


net  pro- 


5500 


750 


202  70 


4800 


8000 


8640 


7374 


8689 


NEW  YORK,  May  4,  1867. 


11 


4 

12 

3 

9 

4 
6 

4 
12 


7 

12 
5 

6 

1 
11 
12 


3 
12 
12 

6 

12 

3 

12 

1 

12 
6 

8 
5 
8 


^  Sundries,  Dr.  to  Merchants'  Bank  Stock 
Cash  Received  of  Finlay  &  Co.  . 
Wm.  Hay,  for  his  half  invoice 
1st  Co.  Sales  for  my  half  do.      . 

Merchants'  Bank  Stock,  Dr.  (to  close)    , 
To  Profit  and  Loss,  for  net  gain . 

-'  '  8, 

Bills  Payable,  Dr. 

To  Cash  Paid  my  two  notes  in  the  Marine  Office 


5500 


500 
2500 
2500 

750 


202    70 


750 


202    70 


Sundries,  Dr.  to  Sundries,       .... 
'James  Walker,  for  his  Receipt  in  full 

Cash  Received  of  Walker 

To  R.  Morris,  for  my  bill  on  him 
tf  Profit  and  Loss  for  8  "^  ct.  Premium  on  the  same  . 


$4800. 


13. 


Sundries,  Dr.  to  Mdse.  delivered  J.  Walker  on  joint  acct. 
3d  Co.  Adventure  for  my  half    .... 
Cash  Rec'd  for  Walker's  half  .... 


// 


Sundries,  Dr.  to  Sundries, 
'  Bills  Receivable  for  draft  on  Landis  &  Co. 

Cash  for  balance         ..... 
.  To  2d  Co.  Sales  for  sale  of  carpeting 

//   Profit  and  Loss  for  2  \^  ct.  discount  on  draft 

Sundries,  Dr.  to  2d  Co.  Sales 
Bills  Receivable,  for  Austin  &  Co.'s  Note     . 
Cash  Received  of  Austin  &  Co.      . 
Mdse.  for  carpets  taken  to  my  acct. 

"" ' n 

*2d  Co.  Sales,  Dr.  to  Sundries,  to  close  acct. 
To  Profit  and  Loss,  for  storage  and  net  gain 
//   Commission  2|  ^  ct.  on  $15874     . 
//   R.  Morris,  for  his  J  net  proceeds 
//   J.  Taylor  &  Co.  for 


88640. 


600 
4200 

4444 
355 

44 
56 

1500 
1500 

3000 

7000  '   ' 
1640 

1 
1 

1 

8500 
140 

3000 

560 

3814 

7374 

i 


8689 


// 


// 


106  05 

396  85 

4093  05 

4093  05 


1.  Why  credit  Merchants'  Rank  Stock? 
I  2.  Why  debit  Walker  ? 

3.  Why  should  not  Bills  Receivable  be  debited  for  §6860  only,  what  it  was  received 

in  payment  for?— Note  2,  B.  Receivable  acct.,  p.  103. 

4.  How  do  we  settle  this  transaction  and  find  each  partner's  share  ? 

I  Note.— As  some  merchants  desire  their  Journals  to  exhibit  a  brief  recapitula- 
tion of  the  Lay  Book  entries,  we  are  journalizing  the  month  of  May  in  this  manner 
as  an  illustration.  The  learner  will  perceive  from  this,  that  by  particularizim;  the 
transactions  more  minutely,  he  can  construct  his  Day  Book  on  the  Journal  inrin, 
and  post  direct  from  it  to  the  Ledger,  without  the  use  of  a  Journal :  which  in  any 
ordinary  business  is,  therefore,  not. required. 


91 


NEW  YOKK,  May  18,  1867. 


*  Renewed  W.  Wallace's  Note  of  81200  due  15th  inst.,  for  the  same  amonnt 
for  3  months.     Received  Interest,  &c.,  in  cash 

25. 


Sold  for  cash  at  1  "^  ct.  premium  to  C.  Hartwell,  Warden  &  Bell's  draft 

on  Landis  &  Co.  of  New  Orleans 7000. 

1  "^  ct.  premium  is 7Q. 

31. 


•H.Pamell  has  failed,  and  the  note  which  I  hold  against  him  for  Lenox's 
Estate,  due  22d  instant,  is  lost 1340. 

J.  Day  has  also  failed,  and  the  note  which  I  hold  against  him 
due  19th,  is  lost 400. 


// 


Shipped  by  the  Columbia,  Gray,  Master,  by  order  and  for  account  of  R. 

Morris,  London,  due  in  cash  this  day. 
1000  Barrels  Flour  from  store,  @  $5        .         .         .         .         85000. 

Shipping  charges  paid  in  cash 300. 

Passed  my  note  to  the  National  Insurance  Co.  for  premium  112.30 

Commission  for  shipping  5  "^  ct.  on  85300      .         .         265. 

»  for  effecting  insurance  i  "^  ct.  on  85565         13.92     278.92 


18    90 


7070 


1740 


5691 


t/ 


Shipped  by  the  same  vessel  and  consigned  to  R.  Morris  80  packages  Mdse. 

received  from  Hartwell  &  Thorndike,  Boston 
My  comm.  receiving  and  forwarding  50  cts.  "^  package,  due  June  30 
Forwarded  Hartwell  &  Thorndike  particulars  for  Insurance 

^""^^        -        '==^-  June  It  .^^  


Bot.  of  Warden  &  Bell  2400  Barrels  Genesee  Flour  @  85.     Amt. 
Invoice  812000.     Sold  them  in  part  payment 

50  pieces  English  Prints  @  84 8200. 

8  pieces  320  yards  Brussels  Carpet  @  82  .         .         640^     840. 

I  am  to  pay  them  cash  on  the  18th  instant     .       10000. 
*  And  to  give  my  note  at  60  days  for  the  balance         1160^  11160. 


Received  from  R.  Morris  his  Account  Sales  of  2d  Co.  Shipment  from 
*New  Orleans  to  London.     Net  proceeds  £1435  10s.  sterling. 

My  i  is  £478  10s.  due  April  15,  equal  to  .         .         2126.66 

Also  sales  of  2d  Co.  Ship't.  to  London,^  "Cambria."  N.P. 

£3800  5s.  stg.     My  i  £1266  15s.  due  Apr.  30,  equal  to  5630. 


I  now  close  the  following  accounts,  viz. : 

2d  Co.  Shipment,  New  Orleans  to  London,  with  a  gain  of 
2d  Co.  Shipment  to  London,  with  a  gain  of 


526.66 
649.66 


Received  from  C.  Hartwell  Account  Sales  of  18  Pipes  Wine  shipped  to 
him  for  sale  on  Ist  Co.  acct.  10th  Apr.  last.     N.  P.  due  June  10 


1.  The  note  being  renewed  at  the  face,  there  ia  no  occasion  for  passing  it  through  the  books  thouehit 

must  appear  on  the  Bill  Book.— See  Bill  Book  May  18,  p.  48. 

2.  Pamell's  note  was  credited  to  Lenox's  Estate,  and  is,'  therefore,  not  our  loss. 

3.  We  must  for  the  present  credit  Warden  &  Bell  for  this  $11160,  and  they  will  be  debited  for  the  cash 

and  note  when  delivered  them.— See  .June  18,  p.  94. 

4.  He  has  sold  the  goods  and  got  our  money  in  his  hands. 


92 


40 


12000 


22 


7756  66 


1176  32 


6480 


NEW  YOBK,  May  18,  1867. 


18 


12 
6 


12 

3 

6 

3 

10 

6 

5 

1 

12 

4 

8 


5 

8 


1 
1 
5 


0 

11 
11 

6 
11 
11 

12 
11 


^Cash,  Dr 

To  Profit  &  Loss,  for  Interest,  &c.,  received  for  renewing 
Wallace's  note  for  $1200         ...         . 

=========       25.       =L=~-^ 


18   90 


Cash,  Dr.  to  Sundries 

To  Bills  Receivable  for  Warden  &  BelFs  bill  sold  to  G. 
Hartwell 

"  Profit  &  Loss  for  1  per  ct.  Premium  received  on  the  same 


7070 


18   90 


il. 


Sundries,  Dr.  to  Bills  Receivable   .... 
'Lenox's  Estate  for  H.  Parnell's  note  lost  by  his  failure 
Profit  &  Loss  for  J.  Day's  note  lost  by  his  failure    . 


^>f 


R.  Morris,  Dr.  to  Sundries  for  Shipment  per  "  Columbia^ 
To  Mdse.  for  1000  bbls.  Flour  from  store  @  $5  . 
tf   Cash  paid  Shipping  Charges  on  the  same  . 
//   Bills  Payable  for  my  note  passed  for  Insurance 
ff   Commission  for  Shipping  5  per  ct.  on  $5300     $265. 

"  "  for  effecting  Ins.  on  5565  i  per  ct.         13.92 

^  


Robt.  Morris,  Dr 

To  Commission  for  Receiving  and  Forwarding  80  packao-es 
of  goods  from  Hartwell  &  Thorndike       .         .         7 

June  1.  ==:-•      --r 


Mdse.,  Dr.  to  Sundries 
To  Mdse.  . 
'  //   Warden  &  Bell 


a 


*R.  Morris,  Dr.  to  Sundries  .... 

To  2d  Co.  Shipment  from  New  Orleans  to  London  . 
//   2d  Co.  Shipment  to  London  .... 


// 


Sundries,  Dr.  to  Profit  &  Loss         .... 

!j  ^^'  f  ^^P^®°*  fr«i»  New  Orleans  to  London,  to  close 
M  Co.  Shipment  to  London,  to  close 


C.  Hartwell,  Dr. 

To  1st  Co.  Shipment  to  Boston 


J"  WK^  ^^  ?°,*  Bills  Receivable  debited  for  this  renewal,  like  that  on  March  17 » 
2.  J  hy  not  debit  Profit  &  Loss  for  both  of  these  losses  ?  ^ ' 

way?  ''"■*^'''  *  ^'"  ^""^  '^''  '^'"•^""*'  ^*»«°  "  i«  t°  be  paid  in  a  particular 

4.  Why  is  Morris  debited  for  these  sums? 


1340 
400 

5691  22 


7000 
70 


1740 


5000 
300 

112  30 

I 

278  92 


40 


12000 


40 


840 
111160 


7756  ;  66 


526  66 
649  66 

i 

6480 


2126  66 
5630 

1176  32 


6480 


93 


I    I 


H 


i 


13 


NEW  YORK,  June  1,  1867. 


*  1st  Co.  Shipment  to  Boston  now  closes  as  follows — 

Total  Sales  86480 ;  Charges  Posted  860. 
My  Commission  on  S6480  @  2h  per  ct.  is        .         . 
Wm.  Hay's  half  net  proceeds  due  this  day  is 
The  balance  of  the  acct.  on  the  Ledger  is  83180. 

My  half  first  cost  is       .         .         .  83240. 
My  half  net  proceeds  is      .         .         3129.     LossUL     83291. 


162. 
3129. 


Eeceived  Cash  from  Warden  &  Bell  for  their  note  due  this  day 

n  — 


'  Bought  for  Cash  at  8  per  ct.  premium,  of  R.  Banks  &  Co.,  for  the  accouct 
of  R.  Morris,  their  Bill  @  60  days'  sight  on  Gibbs,  Son  &  Bright,  Lon- 
don, for  £1500  sterling,  which  I  remit  to  Morris       .         .       87200. 

My  i  per  ct.  for  Investing,  due  this  day  .....         18. 

^ --= ^-  18.  - 


(  J 


Paid  "Warden  &  Bell  balance  due  them  on  purchase  of  Flour  1st  instant 

Check  on  the  City  Bank  for 10000. 

My  note  @  60  days  for  the  balance          .....     1160. 
_  „ 1 


James  Walker  has  returned  the  whole  invoice  of  goods  which  I  placed  in 

his  hands  for  sale  on  joint  account  13th  May  last      .         .         3000. 
My  half  is         ...         .         81500. 
» Walker's  half  is .        .         .         .     81500.         83000. 

Walker  takes  up  his  note  of  82063,  due  9th  October  next, 

and  pays  me  the  balance  in  Cash         .....         563. 


// 


*The  Ship  Columbia  in  which  I  shipped  and  insured  on  May  31,  for  R. 

Morris,  goods  amounting  to  85565,  is  lost.     Received  payment  for  the 

loss  from  the  National  Insurance  Office  as  follows — 

My  Premium  note  held  by  the  office  for $112.30 

Cash  for  the  balance — due  Morris  this  day      ....       5452.70 

"  Bought  of  Joel  Post,  his  Bill  on  Baring  &  Co.  @  60  days'  sight  for  £450 


500. 
1660.        82160. 


sterling 
Premium  8  per  ct.         .         .         . 
Paid  him  in  his  note  due  15th  instant 
Cash  for  the  balance 

-=  -  25.  ~ 

•  Bought  10  tierces  Refined  Sugars  at  Austin's  auction  room 
for  Cash  ........ 

Sold  them  at  the  same  place  to  G.  Barron  on  his  note  at  30 
days  for  8980.     Gain  on  the  transaction 


82000. 
160. 


8800. 
180. 


1.  The  Rule  is.  always  to  deduct  all  charges,  iucluding  commission,  from  total  sales. — See  note  4,  p.  90. 

2.  Our  Profit  &  Loss  account  is  not  to  be  debited  for  this  premium — we  paid  it  for  Slorris. 

3.  We  have  taken  back  Walkers  share  of  these  goods  in  part  payment  of  Jiis  note. 

4.  We  get  iu  debt  to  Morris,  having  collected  this  money  for  him  of  the  Insurance  OflBce. 

5.  We  have  here  received  one  Bill  Receivable,  and  given  up  another. 

6.  Property  can  never  be  delivered  or  credited, until  it  is  received  anddeinted:  this  merchandise  having 

been  sold  before  it  was  brofight  home  or  entered,  the  transaction  cannot  affect  that  account.    Bills 
Receivable — the  thing  rece;ived — is  Dr. ;  Cash  and  Profit  &  Loss,  Cr. 


3291 


2100 


7218 


11160 


3563 


5565 


216a 


980 


NEW  YORK,  June  1,  1867. 


18 


11 

6 
3 
8 

12 
3 

5 

12 

8 

5 

12 

4 


1 
12 

3 
11 

5 

4 

12 


Sundries,  Dr.  to  Sundries 
*  1st  Co.  Shipment  to  Boston,  to  close  acct. 

Profit  &  Loss 

To  Wm.  Hay    .                  ... 
//   Commission 

12. 


83291. 


3 

6 

3 

12 

3 

12 

6 


Cash,  Dr.  . 

To  Bills  Receivable        .... 

//  — — • 

'  R.  Morris,  Dr.  to  Sundries 
To  Cash         .         .         .         . 
If   Commission 

18. 

Warden  &  Bell,  Dr.  to  Sundries,  to  close  acct. 

To  Cash 

'/  Bills  Payable    . 


Sundries,  Dr.  to  Sundries  . 

»Mdse 

Cash 

To  Bills  Receivable 
ff  3d  Co.  Adventure,  to  close  acct. 

// 
*  Sundries,  Dr.  to  R.  Morris     . 
Bills  Payable    .... 
Cash 


Sundries,  Dr.  to  Sundries  . 
^  Bills  Receivable    . 
Profit  &  Loss     . 
To  Bills  Receivable 
//   Cash    .         . 

25. 


Bills  Receivable,  Dr.  to  Sundries 

« To  Cash 

'/  Profit  &  Loss  . 


3180 
111 


•       • 


2100 


7218 


11160 


83563. 


3129 
162 


2100 


7200 
18 


10000 
1160 


3000 
563 


82160. 


The  student  will  not  understand 


1.  Explain  how  the.net  proceeds  is  found  here. 

this  entry  without  repeated  study. 

Why  is  Profit  &  Loss  not  debited  for  the  premium  we  paid  on  this  Bill? 

Walker  paid  us  for  this  $1500  worth  of  goods  on  the  13th  May,  why  is  he  not 

now  credited  for  the  amount,  having  returned  the  goods  ? 

Why  credit  Morris  for  this  money  ? 

Why  is  the  Bills  Receivable  account  both  debited  and  credited  in  the  same 
entry?  «»^w 

Why  is  the  Merchandise  account  not  to  be  credited  for  this  $980,  seeine  mer- 
chandise is  the  thing  delivered?  «  8  "*" 


112  30 
5452  70 


2000 
160 


'  2063 
1500 

5565 


980 


500 
1660 


800 
180 


; 


94 


95 


u 


J 


NEW  YOBK,  June  25,  1867. 


William  Hay  and  mysolf  having  agreed  to  close  our  speculations  on  joint 
account,  he  has  taken  delivery  of  his  half  Invoice  of  Pork,  bought 
4th  May  last,  and  which  remained  unsold,  and  I  carry  my  half  to  my 
own  Merchandise  account 2500 


«  Close  1st  Co.  Sales.     Total  sales  effected  for  200  bales  Cotton  and  800 

bbls.  Flour,  814300. 
My  Commission,  2i  per  cent.,  on  the  same  is  .         .         .         .        357.50 
Wm.  Hay's  half  net  proceeds  paid  him  in  cash  is     .         .         .      6971.25 
My  net  gain  is 471.25 

28.        =====^^^ 


Paid  Cash  J.  Carpenter  &  Co.'s  Bill  for  Repairs  of  House  49  Cedar  Street 


My  Commission  for  collecting  $800  for  Estate  A.  Lenox,  @  5  per  cent.,  is 


// 


•Received  advice  from  Baring  &  Co.,  of  Liverpool,  of  the  Sale  of  1st  Co. 
Shipment  of  Flour,  shipped  by  the  "Erie"  15th  April  last,  net  pro- 
ceeds £900  sterling  84000,  which  they  remitted  agreeably  to  my  orders 
to  R.  Morris,  London,  on  my  account,  10th  ultimo     .         .    $4000. 

Premium  on  Exchange  is  8  per  ct 320. 

Wm.  Hay's  half  is  .         .         .     2160.  " 

My  half  is       .         .        .         .     2160.     84320. 


7800 

280 

40 


// 


Received  advice  from  R.  Morris  that  he  received  Cash  £562  10s.  on  the 

20th  ultimo,  Freight  of  Ship  Roscoe  ....    82500. 

■  The  present  rate  of  Exchange  on  London  is  8  per  ct.  prem.    .        200. 


// 


432U 


2700 


*  I  close  the  acct.  of  Ship  Roscoe  and  owners.     Total  receipts  of  Freight 

is  88700.     Disbursements  to  date  81250. 

My  2^  Commission  on  Freights  and  Passages  collected  is  .         .  217.50 

C.  Hartwell's  i  net  proceeds  is 3616.25 

My                 i            do.                1808.13 

Wm.  Ha/s     i            do.                1808.12      7450 

=======.====         30.                             -  ""'"•--■^ 


Received  advice  from  R.  Morris  that  he  has  sold  my  }  of  Ship  Roscoe. 
Net  proceeds  due  30th  August,  £1462  10s 


6500 


// 


I  now  close  1st  Co.  Shipment  to  Liverpool  with  a  gain  of 
Also  Ship  Roscoe  my  J  with  a  gain  of  . 


361. 
3308.13      3669   13 


Paid  Cash  for  Expenses,  ^  Expense  Book,  from  1st  January  to  date   . 

M 


•  Balance  of  Interest  due  R.  Morris,  "^  acct.  current  rendered,  is 


1. 

2. 
3. 

4. 


Hay  has  paid  for  his  share  of  these  goods,  therefore  cannot  be  debited  when  he  takes  them  away. 

Deduct  all  charges  from  the  total  sales.— See  Note  3,  p.  80,  and  Note  4,  p.  90. 

Profit  &  Loss  or  Exchange  miiit  be  debited  for  both  these  sums,  because  the  gain  on  the  exchange 

forms  part  of  the  profits,  for  which  we  are  accountable  to  our  associates  in  the  transactions. 
This  is  a  settlement  of  all  our  transactions  as  agent  for  the  ship  up  to  this  date.    We  close  her  acct. 

and  carry  the  diridends  to  the  credit  of  the  other  owners. 
This  is  found  by  drawing  out  his  account  current.— See  Form  1,  p.  114. 

96 


1099 


23 


33   06 


1 
0 


9 

8 

12 

6 


10 
12 


10 

8 


NEW  YORK.  June  25,  1867. 


*  Mdse.,  Dr.     . 
To  1st  Co.  Sales 


If 


'1st  Co.  Sales,  Dr.  to  Sundries,  to  close  acct    . 
10  Commission 

//   Cash         ...'•*• 
f   Profit  &  Loss 


2500 


7800 


— =::^.,=^-  28. 

House  49  Cedar  Street,  Dr. 
To  Cash    .        .        .  ' 


Estate  of  A.  Lenox,  Dr. 
To  Commission 


280 


40 


5 

6 

3 

11 


9 
5 

6 


9 
8 
12 
9 
3 


Sundries,  Dr.  to  Sundries 
R.  Morris  •         .         .         .    * 

Profit  &  Loss 

ToWm.  Hay     .         .'.'.' 
//   1st  Co.  Shipment  to  Liverpool 


$4320. 


4000 
320 


Sundries,  Dr.  to  Ship  Roscoe  &  owners 
K.  Morris 
•Profit  &  Loss     .     '         ' 


//   C.  Hartwell      .         .         ..." 

"   Ship  Roscoe,  my  J 

//   Wm.  Hay         .         .'.'.* 


2500 
200 


7450 


5 
9 


6 
11 

9 


6 

12 

5 


R.  Morris,  Dr.  . 

To  Ship  Roscoe,  my  J    . 


30. 


6500 


Sundries,  Dr.  to  Profit  &  Loss    . 

1st  Co^  Shipment  to  Liverpool,  to  close  acct.   . 

bnip  Koscoe,  my  i,  to  close  account   , 

»         —  ~~^ -.^- — _ 

Profit  &  Loss,  Dr.  to  Sundries 
To  Cash    .         .                              •         •         • 
"  "  R.  Morris 


361 
3308  13 


1132  29 


,    '•  ^^Ity^^'  °^*  ^'""''^^  ^-  *b«  P-P-«on  of  these  goods  that  he  has  taken 
i    2.  How  is  the  net  proceeds  and  Hay's  share  found? 

I    '•  ?hU'er  "^  •^^'^  ^"  ^-«*  *  ^-  a^L  for  these  premiums  on  Ex- 
I    4.  What  is  the  object  of  this  entry?  i 

6.  How  is  this  balance  of  interest  ascertained  ?  ! 


G 


14 


2500 

I 

f 

357  50 

6971  25 

471  25 


280 


40 


2160 
2160 


2700 


217  50 
3616  25 
1808  13 
1808  12 


6500 


3669  13 


1099  23 
33  06 


9: 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 
ON  THE  DETECTION  OF  ERRORS. 

1.  If  the  Day  Book,  Journal,  and  Ledger  have  been  carefully  checked  according  to  our 
previous  directions,  we  may  presume  that  all  is  thus  far  correct.  If  our  trial  comes  out 
incorrect,  our  attention  will,  therefore,  be  first  directed  to  its  own  additions  and  those  of  the 
Ledger.  Then  see  that  all  the  accounts  are  taken  off  correctly,  and  upon  the  proper  side  of 
the  sheet — that  the  amounts  are  correctly  forwarded  from  one  page  to  another.  Then  exa- 
mine the  additions  of  all  the  Journal  entries,  to  be  certain  that  the  debits  and  credits  are  equal 
upon  that  book.  If  the  error  is  not  found  by  these  means,  the  posting  from  the  Journal  to 
the  Ledger  since  the  last  balance  will  have  to  be  all  checked  over  again — a  formidable  under- 
taking in  a  business  of  any  magnitude ;  but  there  is  no  other  means  of  finding  the  error. 

2.  On  the  correction  of  errors  in  the  Ledger. — It  is  not  easy  to  lay  down  pre- 
cise directions  for  correcting  errors  in  all  cases.  But  it  may  be  useful  to  the  learner  to  have 
some  general  directions,  and  also  to  be  guided  in  all  cases  by  the  following  general  rule — 
always  to  make  the  correction  explain  itself,  by  distinctly  referring  to  the  place  of  the  error, 
and  the  error  to  refer  to  the  place  of  correction.  It  is  not  sufficient  merely  to  write  "  To 
Error"  or  "By  Error, '^  because  either  the  book-keeper,  or  his  successor,  may  be  called  upon 
for  an  explanation  of  an  entry  of  this  kind. 

3.  If  a  post  be  omitted  at  the  proper  date,  enter  it  under  the  date  of  the  last  entry,  with 
the  back  date  in  the  title  column,  in  a  parenthesis,  thus  (July  19) ;  the  page  of  the  Journal 
in  its  own  column. 

4.  If  two  accounts  be  opened  with  the  same  person,  close  the  one  into  the  other,  "  To,"  or 
"By  A.  B.'s  acct.,  fol." — footing  and  ruling  off  the  closed  account,  as  a  settled  account; 
stating  the  particulars  of  such  transfers  at  A.  B.'s  open  account  with  the  Journal  reference. 

5.  If  you  have  posted  an  entry  to  the  wrong  side  of  an  account,  erase  the  figures  in  the 
amount  column,  leaving  a  couple  of  ciphers  to  fill  up  the  space,  and  leave  the  rest  of  the 
line  without  erdsure :   it  serves  to  explain  the  alteration  and  does  not  deface  the  page 
Then  make  the  post  to  the  proper  side. 

6.  If  you  have  posted  to  a  wrong  account,  dispose  of  the  error  as  directed  in  the  last 
paragraph ;  then  post  the  entry  to  the  proper  account. 

7.  If  the  same  entry  be  twice  posted,  leave  ciphers  in  the  money  column  of  the  last 
entry  as  before  directed.  If  you  have  room  in  the  title  column,  insert  (see  last  entry)  or 
such  explanation  as  the  case  require,  on  the  same  line  with  the  correction. 

8.  I  do  not  approve  of  correcting  errors  by  counter  entries  if  it  can  be  avoided,  as  it  gives 
the  account  a  distorted  appearance.  The  merchandise  account,  for  instance,  may  by  this 
means  be  made  to  exhibit  an  amount  of  purchases  and  sales  far  beyond  the  reality  j  while 
the  chief  object  for  keeping  this  account  is  to  show  these  amounts  correctly.  If,  however, 
the  error  is  discovered  after  the  account  is  footed  and  forwarded  (a  thing  that  ought  never 
to  be  done  until  it  is  checked),  then  the  correction  can  only  be  made  by  a  counter  entry,  or 
by  footing  the  column  and  deducting  the  error  from  it. 

9.  If  you  have  discovered  an  error  in  the  addition  after  the  account  is  footed  and  for- 
warded, note  it  "short"  or  "over  added,' $ — corrected  June  ■ — ,  fol." — and  make  the  entry 
of  the  correction,  as  usual,  refer  to  the  folio  of  the  error.  If  there  be  many  of  them,  it  may 
be  proper  to  make  a  Day  Book  entry  of  them ;  but  this  can  only  be  done  with  those  errors 
requiring  a  double  entry  for  their  correction. 

10.  On  correcting  errors  in  the  Journal. — This  book,  like  the  Ledger,  not  being 
a  book  of  original  entry,  when  it  can  be  done  without  defacing  the  page,  there  is  no  objec- 
tion to  correcting  an  entry  by  erasing  a  figure  or  two,  and  writing  over  them  again.  But 
if  the  error  make  it  necessary  to  cancel  the  whole  entry,  it  must  not  be  scored  nor  scratched 
out,  but  mark  it  in  the  margin  "  void,  corrected  page," — then  make  the  corrected  entry  in 
the  first  vacancy,  giving  reference  to  the  place  of  error. 

11.  On  correcting  errors  in  the  Day  Book. — It  should  be  a  rule  never  to  erase  any 
essential  particular  of  a  record  on  this  or  any  other  book  of  original  entry.  If  an  error  admits 
of  correction  without  cancelling  the  whole  entry,  it  may  be  done  by  running  the  pen  lightly 
through  the  name  or  figures,  leaving  them  legible,  and  writing  the  correct  ones  over  them. 

12.  If  the  error  makes  it  necessary  to  cancel  the  whole  entry,  you  will  proceed  as  just 
directed  for  the  same  purpose  in  the  Journal. 

9S 


SET  II.— DOUBLE  ENTEY  BOOK-KEEPING. 


ON  OPENING  AND   CLOSING  THE  LEDGER. 

After  journalizing  a  page  or  a  month  of  the  Day  Book,  the  learner  will  open  his  Ledger 
according  to  the  directions  in  note  1,  page  32.  Then  proceed  as  there  directed  with  the 
posting  and  checking,  until  the  whole  business  of  the  set  is  posted  into  the  Ledger.  Then 
add  up  all  the  accounts  that  remain  open,  inserting  the  amounts  on  each  side  in  pencil  in 
the  margin.  From  these  amounts  make  up  your  trial  balance,  referring  to  those  on  page  36 
for  the  form,  and  to  our  directions  for  detecting  errors  on  the  last  page  if  it  comes  out  wrong. 

It  may  be  proper  here  to  fix  the  pupil's  attention  distinctly  upon  the  object  for  closing 
the  licdger,  which  is  not  only  ^  to  ascertain  the  gain  or  loss,  but  to  record  it  upon  the 
face  of  the  Ledger  in  such  a  manner  as  to  afford  satisfactory  evidence,  at  any  future  period, 
of  the  true  state  of  the  business  at  this  time. — See  Notes  1  to  4,  p.  18. 

For  this  purpose  the  Double  Entry  Ledger  furnishes  the  particulars  for  making  up  '  two 
statements,  both  of  which  will  exhibit  the  same  result.  1st,  a  detailed  statement  of  gains 
and  losses  in  the  Profit  &  Loss  account,  from  whence  the  stock,  or  original  capital,  receives 
the  result,  and  then  immediately  shows  the  present  net  capital.  The  second  statement, 
which  must  always  confirm  the  correctness  of  the  first  one,  is  made  up  by  presenting  a  de- 
tailed account  of  Effects  and  Liabilities  in  the  Balance  Account,  upon  the  principles  before 
explained,  Notes  2  to  6,  p.  18,  and  Note  4,  p.  32.  The  difference  between  the  amount  of 
the  Effects  and  that  of  the  Liabilities  must  be  the  present  net  capital,  and  if  the  operations 
are  all  correct  will  always  agree  with  the  result  produced  by  the  first  statement. — See  Notes 
1  to  6,  Balance  acct.,  p.  35.  This  agreement  between  the  Stock  and  Balance  account  is 
always  a  certain  consequence  of  this  mode  of  keeping  accounts,  because  the  net  gain  or  loss, 
which  is  finally  made  to  show  itself  in  the  Stock  account,  must  always  produce  a  correspond- 
ing increase  or  decrease  of  property,  which  affects  the  Balance  account  to  precisely  the  same 
extent  that  it  does  the  Stock  account.  Therefore,  as  the  balances  of  property  agreed  with 
the  credit  side  of  stock  (Rule  11.)  at  the  opening  of  the  books,  they  must  continue  to  do  so 
ever  after,  so  long  as  all  the  steps  of  the  process  are  strictly  correct.  The  learner  will  now 
derive  farther  assistance  from  the  following 

RULES  FOR  CLOSING  THE  LEDGER. 

Rui  E  I.  All  personal  accounts  close  To  or  By  Balance. 

II.  All  accounts  of  property  belonging  to  ourselves,  close  as  follows  : — 

Case  1st. — If  all  be  sold,  paid  away  or  lost,  and  the  account  remaining  open. 

close  it  To  OR  By  Profit  &  Loss. 
Case  2d. — If  all  or  part  remain  on  hand,  credit  the  account  first  By  Balance  for 
the  value  remaining  in  hand,  and  if  this  entry  does  not  close  it,  close  as  in 
Case  1st — To  or  By  Profit  &  Loss. 

III.  All  accounts  representing  gain  or  loss,  close  To  OR  By  Profit  &  Loss. 

IV.  When  Profit  &  Loss  has  received  all  its  transfers,  it  closes  into  Stock — never 

into  Balance — and  after  all  other  accounts  are  closed,  Stock  finally  closes 

into  Balance. 
V.  Bills  Payable  always  closes  To  Balance  for  the  amount  w^  owe  on  our  notes. 

When  they  are  all  paid,  the  account  must  be  self-closed. 
It  may  be  stated  also  as  a  general  rule,  that  no  property  account  can  close  To  Balance. 
This  part  of  Book-keeping  is  rarely  ever  understood,  without  repeated  and  attentive  study ; 
but  as  no  person  is  entitled  to  call  himself  an  accountant  who  cannot  close  a  Ledger,  the 
author  trusts  that  all  learners  who  desire  to  excel  in  the  profession,  will  give  this  part  of 
the  subject  that  attention  which  its  importance  deserves.  If  they  will  but  take  half  the 
pains  to  study  it,  that  he  has  taken  to  explain  it,  their  perseverance  will  be  amply  repaid. 


1. 

2. 

I. 
n. 


in. 

IV. 

v. 


What  is  the  object  of  closing  the  Ledger? 

What  particulars  does  it  furnish  for  the  purpose  of  ascertaining  the  present  net  capital? 

How  do  all  personal  accounts  close  ? 

How  do  property  accts.  belonging  to  ourselves  close  when  all  is  sold,  paid  away,  or  lost,  and  the  acct.  stiU  remaining 

open  ? 
How  if  all  or  part  of  the  property  remain  in  hand? 
How  do  all  accounts  representing  gain  or  loss  close? 
How  does  the  Profit  &  Loss  account  close,  and  when  does  it  close  ? 
How  does  the  Bills  Payable  account  close  while  we  owe  any  thing  on  our  notes? 
How  does  it  close  when  all  our  notes  are  paid  ? 

99 


INDEX  TO  LEDGER  B. 


A. 

Merchandise          .         .         ,         . 

a 

1 

Morris,  Robert 

• 

0 

Bills  Receivable 

3 

Mor/is,  Robert,  Sales     . 

• 

7 

Bills  Payable         .         .         .        . 

.    4 

Merchants'  Bank  Stock 

• 

4 

Balance  Account 

.      13 

• 

Cash 

2.12 

New  York  Insurance  Office   . 

• 

8 

Commission       .       ,. 

8 

1 

Carter,  James 

.    5 

0. 

City  Bank  Stock 

.      10 

Profit  &  Loss    .        .        ,        . 

• 

6 

D. 

Q- 

Estate  of  A.  Lenox 

.10 

First  Co.  Sales 

9 

R. 

First  Co.  Shipment  to  Boston 

.11 

1 

First  Co.  Shipment  to  Liverpool 

11 

Second  Co.  Sales 

• 

12 

Shipment  to  Liverpool 

■ 

7 

0. 

Stock 

• 

1 

Shipment  to  New  Orleans 

• 

7 

Hartwell,  Calvin   . 

.12 

Ship  Hudson         .... 

• 

6 

Hay,  William   .... 

3 

Ship  Roscoe,  my  J    . 

• 

9 

House  44  Broadway 

.    4 

Ship  Roscoe  and  owners 

• 

9 

House  49  Cedar  Street 

.      10 

Second  Co.  Shipment  to  London 

• 

11 

Second  Co.  Shipment  from  New  Orleans 

L 

to  London          .... 

• 

11 

J. 

Taylor.  John,  <&  Co.  . 

• 

8 

Third  Co.  Adventure     . 

• 

11 

K. 

U. 

Lenox,  Charlotte  .        .        .        . 

.10 

Lenox,  Robert .... 

.      10 

V. 

Walker,  James 

• 

7 

Warden  &  Bell      .... 

• 

5 

t 

X. 

Y. 

Z. 

Caution  to  Young  Book-keepers. — Always  index  an  account  before  you  head  it  in 
the  Ledger.  Without  this  precaution  you  are  liable  to  forget  it  occasionally,  and  afterwards 
to  open  a  second  account  with  this  same  individual :  and  unimportant  as  this  may  appear 
to  the  inexperienced,  they  will  find  it  will  sometimes  lead  them  into  very  troublesome  and 
vexatious  mistakes.       ^ 

100 


Dr. 


STOCK. 


Cr. 


1887. 

Jan. 

June 


30 


To  Sundries 
It  Balance 


fol. 


50 


50 


The  learner  is  referred  to  the  Introductory  Ledger  for  all  the 
exercises  that  will  apply  to  this  one.— See  Stock  acct.,  p.  33. 

1.  Is  this  acct.  not  usually  kept  without  any  entries  from  the 

time  of  opening  until  closing? 

2.  If  some  part  of  the  Liabilities  were  left  out  at  the  opening 

of  the  Books,  what  account  should  it  be  afterwards 
carried  to  ? 

3.  When  collections  of  doubtful  debts  (usually  left  behind  in 

the  old  Ledger  when  opening  new  books)  are  made,  is 
thianot  the  proper  account  to  credit  for  them? 


1867. 

Jan. 
Apr. 
June 


June  30 


1 
10 
30 


By  Sundries 
If    Mer's  Bank  Stock 
II   Profit  &  Loss   fol. 

64344.50 
2800. 

61544.S0 


By  Bal. 


1 

8 
6 


31300 
6000 
28044150 

64344  pO 


61544  50 


It  is ;  but  there  is  no  irregularity  in  carrying  an  entry  to  it 
like  that  on  the  10th  April,  above. 

2.  Either  to  this  or  the  Profit  &  Loss  account.    It  would  not 

be  advisable  to  encumber  this  account  with  trifles. 

3.  It  will  make  no  difference  in  the  final  balance,  whether  en- 

tered here  or  at  the  Profit  &  Loss  acct. ;  but,  for  rea- 
sons before  given,  large  amounts  of  this  kind  ought  nc 
to  appear  in  the  Profit  &  Loss. — See  note  3,  p.  30. 


MERCHANDISE. 


iser. 
Jan. 


Feb. 

Mar. 

May 
June 


1 
3 

15 
20 
24 
1 

18 
12 

18 
1 
18 
25 
30 


To  Stock 

Bills  Payable 

Cash 

Bills  Payable 

J.  Carter 

Bills  Receivable 

Sundries 

Bills  Receivable 

Sundries 

Morris'  Sales 

2d  Co.  Sales 

Sundries 


// 


II 


II 


It 
II 


3 
4 
6 

» 

11 
i2 

'/  13 

1st  Co.  Sales  5083o.iojl4 
Profit  &  Loss    fol. '  6 


3000 ; 

1000} 

1800  j 

16001 
200 1 
5001 
[1119610 

1000 

5980 

3240 

3814 
12000 
.  3000 
I  2500 
13743  12 


64573  22 


See  Mdse.  acct.  p.  33,  and  directions  for  ruling,  p.  66. 

1.  What  difference  is  there  between  the  closing  of  this  account 

and  any  other  account  of  property  ? 

2.  Supposing  it  is  required  to  know  the  gain  or  loss  upon  Flour, 

Cotton,  or  any  other  branch  of  your  Merchandise,  how 
is  it  to  bo  done  ? 


1807. 

Jan. 


Feb. 


Mar. 
Apr. 

May 

June 


31 
10 1 

! 

15 1 
16 

19! 
20 : 
12 

18 

|28 

5 
20 
28 

5 
10 
15 
13 
131 

1 
30 


By  Cash 

Bills  Receivable 
James  Carter 


Ship  Hudson 
Shipm'ttoN.Orl's 
J.  Taylor  &  Co. 
R.  Morris 
Bills  Payable 
N.  Y.  Ins.  Office 
Sundries 
1st  Co.  Sales 
Sundries 

Ship't  to  Liverpool 
Sundries 
// 


// 
R.  Morris 

iYlaSe.  18128.22 

jBui.  p.I.B.p     )64573.a 
^  '^       60830.10 


4 
4 
5 
6 

7 
8 


11 

12 


300 
3000 
452 
108 
600 
400 
5900 
2760 
600 
200! 
500 
36901 
33551 
3240! 
2500 
3000 
4600 
2400 
30001 
5000 
840 


ia,|18128|22 
"^«^   6457322 


.;( 


1.  There  is  no  essential  difference,  except  in  the  manner  of 

finding  the  balance  in  hand. 

2.  Open  an  account  for  the  Flour  or  whatever  branch  of  this 

account  you  desire  to  show  its  own  gain  or  loss,  and 
conduct  and  close  it  in  every  respect  like  the  Merchan- 
dise account. 


Note.— Be  particular  to  write  the  "  Balance"  closing  entries  in  red.    No  others  are  brought  down  or  forward,  and  no  othen 
Bhould  be  written  in  this  color.— Note  5,  Stock  acct.,  p.  33. 


101 


Br. 


CASH. 


Cr 


Dr. 


BILLS 


RECEIVABLE. 


Cr.     s 


1887. 

Jan. 


\\\ 


1 
3 

16 
18 
24 
30 


Feb. 


To  Stock   Led.  A.  f.  2. 
//  Mdse, 
//  J.  Carter 
//  House  44  Broad'y 
'/  B.  Receivable 
//  Sundries 


31    //  B.  Payable 


10906.70! 

6680. 

4226.10 


' 


Mar. 


5 

6 

12 

25 

28, 


ToBal. 

"  R.  Morris'  Sales 
B.  Receivable 


Sundries 
Profit  &  Loss 
Sundries 

0 


3 


5 


nttSJB 


1 

2 


12 

17 

28 


To  Bal. 
//  Wni.  Hay 
//  Ship  Hudson 
H  Mdse. 

II  Sb.Roscoe&  Owners 
n  N.Y.Ins.  Co. 
II  Estate  A.  Lenox 
//  Sundries 
//  Mdse.  ?^;» 


1090670 


4226170 
360 

796  40 
2000j 
2000, 

400! 

4822122 
2810  16 


17415  48 


70 


8 


11641.90 

I 


31  To  Bal. 
Apr.  20i   //  Sundries 


6462 
2500 
1850 

255 
1800 
3690 
7500 

104  20' 

500 

24661  90 


11 ' 


221 


Forward  to  fol. 


11641  90 
9    2017  70 
10    1520  80 


12 


15180  40 


18«7. 

Jan. 


3  By  Mdse. 


16 

18 
20 
30 


Feb, 


Mar. 


B.  Payable 
II    House  44  Broad 'y 
II   Ship  Hudson 
II  II  **>• 

//    Bai  carried  down 


5 
12, 


18 


Apr. 


20i 
25 

28 


2 
4 

12 
16 
17 
25 
31 


By  Mdse. 

R.  Morris'  Sales 

// 

// 
Ship't  to  N.  Orl's 
J.  Taylor  &  Co. 
House  in  Broad'y 
Profit  &  Loss 
R.  Morris 
Bills  Payable 
R.  Morris'  Sales 
Bills  Receivable 
Sundries  i«»2.re 

Bal,  carried  down 


1800 
1300 
280 
2100 
1200 

4226 


70 


10906  70 


17415 


By  Ship  Roscoe  my  \ 
Sh.Roscoe&Owners 
Bills  Payable 
Mdse. 

Estate  A.  Lenox 
Sundries 
1st  Co.  Sales 
Sundries  ^^"^ 

Bal.  curried  down 


1 
5 

10 


15 
20 
22 


// 


By  B.  Receivable 
Ship't  to  Liverpool 
R.  Morris 
J.  Taylor  &  Co. 
Sundries 

1st  Co.  Ship't  to  B'n 
Sundries 
2d  Co.  Sales 
Sundries 

Forward  to  fol. 


24661 


8 


55 


7457 


1.  The  leamer'a  attention  is  here  particularly  directed  to  the  operation  of  continuing  an  account  upon  a  new  page.  If  we  were 
balancing  the  account  here,  the  expression  of  the  closing  entry  would  be, "  Balance  in  hand  carried  forward,"— not  "  car- 
ried down ;"  and  the  new  account  would  open, "  Balance  Bro't"  forward.  The  columns  should  never  be  footed  in  ink  until 
checked.  Never  forget  to  leave  a  line  to  foot  the  columns  upon.  The  same  directions  apply  to  all  other  accounts.— Note 
2,  Wood's  acct.,  p.  15. 

102 


1.  Is  it  not  better  to  post  the  debit  and  credit  of  each  note 

on  the  same  line  opposite  each  other  ? 

2.  Does  the  manner  of  conducting  this  accoitnt  not  form  an 

exception  to  Rules  VI.  and  VII.? 

3.  Why  is  this  deviation  from  the  rule  for  conducting  other 

property  accounts  ? 


iserr 



1        II!    18W. 



Jan. 

1  To  Stock, 

1 

3000 

t  Jan. 

24 

By  Sundries, 

2 

1000 

10    //  Merchandise, 

3000 

Feb. 

6 

II         II 

3 

800 1 

18 

II  J.  Carter, 

2 

600 

12 

II         II 

600 

30 

//  Sundries, 

1515  75 

It  Cash, 

2000 

31 

//  Bills  Payable, 

800 

18 

II  Mdse., 

3 

'  1000 

Feb. 

9 

//  Morris'  Sales, 

3 

2100 

28 

//  Cash, 

5 

4444 '44 

12 

//  Bills  Receivable, 

i    300 

Mar. 

16 

//  Wm.  Hay, 

7, 

300 

25 

//  Cash, 

4 

,  2000 

17 

//  Sundries, 

500 

//      // 

'  4444  44 

Apr. 

5 

II  Ship't  to  Liverpool, 

8 

4500 

28 

//  Sundries, 

5 

2011      ! 

1 

20 

II  Cash, 

9 

2011 

Mar. 

12 

II  Morris'  Sales, 

6 

4500 

22 

//      // 

10 

'  1515  75 

//  Estate  of  A.  Lenox, 

7! 

1700 

25 

//  R.  Morris, 

1 

2000 

17 

II  Sundries, 

1 

400 

May 

25 

II  Cash, 

12 

7000 

20 

//  Estate  of  A.  Lenox, 

1 

1340 

31 

//  Sundries, 

1  1740 

Apr. 

1 

II  Sundries, 

8= 

2063 

June 

12 

II  Cash, 

13 

2100 

May 

13 

//          // 

11 

7000 

18 

//  Sundries, 

2063 

18 

//  2d  Co.  Sales, 

3000 

//              II                        34074.19 

500 

June 

18    //  Sundries, 
25    II        II 

13 

2000 
980 

1 

30 

II  Balance, 

■  1 

• 

30 

42754.19 
34074.1» 

19 

1 

19 

42754 

„.- 

^2754 

S680. 

To  Balance, 

8680 

See  Bills  Receivable  account,  p.  33. 

1.  It  is,  where  there  are  no  endorsements :  but  it  is  better  not 

to  occupy  the  learners  attention  with  this  mode  of  post> 
ing  it  until  he  has  learned  the  principles — See  p.  167. 

2.  It  does  so ;  it  is  always  debited  and  credited  for  the /ace  of 

the  bill  only;  not  for  what  it  costs  or  what  it  brings  in. 

3.  It  is  done  for  the  purpose  of  making  the  balance  of  the 

acct.  agree  with  the  balance  of  notes  on  hand. 


WILLIAM 


iwrr 
Jan. 


To  Stock  Ledger  A,   f.    2,3000 


Mar.    2  To  J.  Walker,                  5  600 

16  //  Bills  Receivable,        7  300 

Apr.  15  //  Sundries,                  i  9  1799 

May     4  //  Merch.  B'k  Stock,  11  2500 


June 


30 


II  Balance. 


5199. 


tbl.il3  lOSia  12 


See  Form   III.,  p.  116,  and 
Morris'  account,  p.  105. 


16012  12 


1867.^ ~ 

Jan.  30  By  Sundries, 


Feb.  12 
Mar.  i  1 

5 

Apr.  I  5 

15 

June    1 

28 


By  Ship't  to  N.Orleans 
//  Cash, 

II  1st  Co.  Sales, 
//       If  II 

II  R.  Morris, 
II  Sundries, 
//         // 
//         II 
II  Ship  Roscoe  &  Own. 

16012.12 
5199. 


ioei3a2 


2  3000 

3  1500  " 

5  2500 
I  450 

6  1400 ; 
'  8  2000  I 

9    1065; 

13  3129 

14  2160' 
1808  12 

1601^12 


June  30  By  Bal.*^  %  rendered, 


103 


•v 


Jlr. 


II 


BILLS 


PAYABLE. 


Cr. 


IMT. 

Jan.  16 
Feb.  18 
Mar.  4 
5 
Apr  22 
23 
4 
8 

June  18 
3u 


May 


To  Cash, 
'/  Sundries, 
//  Cash, 
//  Mdse., 
II  Sundries, 
II  Cash, 
//       // 
//       // 

//  R.  Morris 
'/  Balance. 


1 
4 
6 


1300 

1600 

1400 

25001 

8000 
601 

2222  22 
202  70 
112  30 


iser. 
Jan. 


24865  44 


See  Bills  Payable,  p.  34. 

1.  Ifi  it  not  found  conTenient  to  post  the  debits  and  credits 

npon  the  same  line,  aa  described  in  the  Bills  Keceivable 
acct.? 

2.  Why  then  was  it  not  introduced  here? 

8.  How  does  this  account  close  and  re-open  when  posted  in 
this  way? 


Feb. 


Mar. 
Apr. 


1  By  Stock, 
3    //  Mdse., 
15    //      // 

20 1  II  Ship  Hudson, 
31    //  Bills  Receivable, 
II  Sundries, 
//  Mdse., 

II  R.  Morris'  Sales, 
II  R.  Morris, 
II  Sh.  Roscoe&own'rs 
II  Ship't  to  Liverpool, 
//  R.  Morris, 
II  John  Taylor  &  Co. 
//  Sundries, 
//  2d  Co.  Sales, 
May  31    ii  R.  Morris, 
!  June  18    //  Warden  &  Bell, 


1 

// 

20 
4 

j  5 

20 


4 

5 

8 


tlO 
12 

13 


24865.44 
17938.22 

8027.22 


300 
1000 
1600 
8000 

800 

600 
2222  22 
2222  22 
25001 

400 

16145 
4125 

601 

145 
3000 

112  30 
1160! 

24865  44 


June  30  By  Balance, 


6927  22 


1 


1.  I  recommend  this  mode  of  posting  both  bill  accounts,  in 
all  kinds  of  business. 

2.  Because  it  is  desirable  to  avoid  distracting  the  pupil's  at- 
tention with  too  many  matters  at  once,  and  we  have  ex- 

1  emplified  it  in  our  Bill  Accounts,  p.  167. 

|j  3.  Precisely  like  the  Bill  Book,  p.  50. 


HOUSE  44 


BROADWAY. 


1867. 


Jan.     1  To  Stock  Ledger  A,  fol.  3  15000 
18    //  Cash,  2  w    280 


Feb.  18,  //      // 


IMW. 

181. 


June  30  To  Balance, 


201 

15481 

15000 


1.  What  is  this  account  debited  and  credited  for? 

2.  How  does  it  close  ? 

3.  How  is  the  first  closing  entry  of  $15000  found? 

4.  How  is  the  second  closing  entry  found  ? 

6.  What  does  this  difference  represent,  and  what  is  done 
with  it? 


1807. 


Jan.  18  By  Cash, 

May  I  1  j  ^      1 

June '8^'    //  B-')r'Tv"v 

30    //  Profit  &  Loss, 


300. 
15300. 


2 

150 

10 

150 

1 

ljtl!*fl 

f.  6 

181 

1 

' 

!l5481 

has 


1.  It  is  debited  for  its  cost  and  credited  for  what  it 

brought  me  in.— Rules  VI.  and  VII.,  p.  39. 

2.  By  Rule  II.,  p.  99. 

3.  It  is  what  we  value  the  house  at. — See  first  debit  entry. 

4.  It  is  the  difl"erence  between  the  two  sides  after  the  first 

closing  entry  is  made. 
6.  It  is  the  loss  upon  the  property,  and  we  debit  Profit  k  Loss 
for  it. 


MERCHANTS' 


BANK  STOCK 


Apr.  10  To  Stock,  8 

May    4    //   Profit  &  Loss,  11 


5000 
750 

^75^ 


1-  How  is  this  account  kept  and  closed? 


i88r.  I  - 1 
May    1    By  Cash, 

1 4     //   Sundries, 


10 

11 

250 

5500 

5750 

1 

1.  This  is  a  property  account,  and  is  conducted  by  the  same 
rules  as  all  other  property  accounts.  The  property 
being  all  sold  on  the  4th  of  May,  the  account  was  ther, 
closed  by  a  Day-Book  entry. — See  Note  6,  p.  80. 


104 


Dr. 


ROBERT 


(London) 


MORRIS. 


Cr. 


S 


).  11 


1867, 

Feb.  18 
20 

Apr.  j  5 
10 
^5 

May  31 1 

June  1 
12 

28 


m 


To  Sundries 

n  B.  Payable 

//  Sundries 
II        11 
II        II 
II        If 

II  Commission 

'/  Sundries 
//         // 
//         // 

II  S.  Roscoe  &  owners 

II  S.Roscoe.myiS| 

5676.69 


June  So  To  Bal.  1^  acct.  Bend. 


f 


4440 
2500 

8  2166  25 

9  4980  33 
10  2400 

12  569122 
40  i 

7756  66 

13  7218 
14 1 1  4000 

2500 
6500  _ 

60192  46 

J 

59 


ii 


5676 


1.  What  does  the  debit  and  credit  side  of  this  account  show? 

2.  How  do  they  close  ? 

3.  Why  is  the  expression  "  Rendered"  annexed  to  the  Balance 

brought  down  ? 


1807. 

Jan.     1  By  Stock.  Led.  A.  fol. 

OFeb.    1    //  Mdse. 

I         25    //  Cash 

'         28    //  Sundries 

Mar  12    w  Morris'  Sales 

Apr.  ^0 .  II  2d  Co.  Sales 

May    8|  //  Sundries 

18 1  II  2d  Co.  Sales 

June  18    II  Sundries 

30    //  Profit  &  Loss  ^^^^ 

II  iial.  10 


I 


2  2000 
3|  8888  88 
4*  1995 
5  444444 
7  9052 
ioi'  4000 
1  4444  44 
4093  05 

13  5565 

14  33  06 

i;;    .-!.;  ■■  5ii 
50192  46 


f 


:  1.  All  personal  accounts  are  alike,  and  are  debited  for  year 
account  against  them,  and  credited  for  their  accotmt 
against  us. — Note  3,  p.  23. 

2.  To  or  By  Balance. 

3.  Because  a  statement  of  his  account  has  been  sent  him^^ 

See  p.  114. 


WARDEN 


& 


BELL. 


1867. 

Jan.  24  To  James  Walker 
June  18    //    Sundries 


2      500 
i3  11160 

11660 


11867. 

Jan. 
June 


1 
1 


By  Stock,  Led.  A.  fol. 
Mdse. 


// 


1.  When  was  this  account  footed  and  ruled  oflF? 

2.  Is  it  always  necessary  to  close  an  account  every  time  it  is 

settled? 


2      500 
12  11160 

j     11660 


1.  On  June  18,  when  we  paid  him  off. 

2.  There  may  be  cases  when  it  is  not  absolutely  necessary  to 

do  so ;  but  as  the  omission  of  it  sometimes  leads  to  very 
troublesome  consequences,  our  advice  is,  always  to  make 
it  a  rule  to  do  so.— See  note  1,  Wood's  Account,  p.  15, 
and  note  p.  20. 


JAMES 


CARTER. 


1867. 

Jan.  10  To  Mds& 
15    //         a 


16 


To  Mdse. 


19    // 


II 


I' 1867.  ' 

452        Jan.  16  By  Cash 


1.  This  account  was  closed  on  the  15th  and  19th;  would  the 
balance  struck  on  the  19th  not  have  served  for  both? 


18  By  B.  Receivable 


20 


II   Sundries 


560 


560 


600 
400 

1000 


1.  It  would ;  but  it  is  better  to  close  the  old  account  every 
time  it  is  paid. 


105 


6 

Dr. 

SHIP. 

HUDSON. 

Cr. 

1867. 

.        1 

1867 

1 

Jan. 

20  To  Sundries 

2 

16000 

Mar. 

2 

By  Cash 

5 

1850 

30    //   Cash                 ™^ 

1200 

{May 

4 

„        „                   uso. 

10 

3500 

June 

30   II  Profit  &  Loss    fol. 

6 

4150 
21350 

( 

Jane 

30 

//    Balance        tmi    f- 

17300. 
4150. 

13 

ilUuUU 

1 

30 

21350 

1 

June 

To  Bahnce 

16000 

1.  How  is  this  acconnt  kept,  and  how  are  the  first  and  second        l.  This  account  is  in  every  respect  like  "  House  in  Broadway," 
closing  entries  found  ?                                                         I           and  closes  by  the  same  rule. — See  that  account,  p.  104. 

PROFIT                        &;                      LOSS. 

IWT. 

1 

1 

'\m.^ 

1 

Jan. 

20  To  J.  Carter 

2 

200 

1 

Jan.  30 

By  Sundries 

2 

1575 

31     //   B.  Payable 

3 

30 

Feb.  25 

//   Cash 

4      400 

Feb. 

6    //   B.  Receivable 

3 

60 

;28 

//       II 

5      377  78 

12    //              » 

3 

300 

u   Sundries 

|l    376  72 

18    //   Cash 

4 

181 

Mar. 

6:  II   1st  Co.  Sales  . 

6      358 

25    //      // 

355 

7 

56 

12 

II   Shipm'ttoN.Orl's 

1507 1 

Apr. 

22    //   Sundries 

lo' 

05 

//   Morris'  Sales 

7 

18' 

May 

31    »   B.  Receivable 

12 

400 

17 

//   Sundries 

4  20 

June 

1     //    Sundries 

13 

111 

Apr. 

1 

//  Bills  Receivable 

8 

63 

18    //         // 

160 

20 

II  Cash 

9          6  70 

28    //        II 

14 

320 

22 

//      // 

10 

5  05 

II  S.Roscoe&  owners 

200 

25 

//  R.  Morris 

400 

30    II  Sundries        «"» 

1132 

29 

30 

//   3d  Co.  Adventure 

500 

If   Amount  to  date 
fHo.inBr'dway«^«'f. 
n   Stock  for  net  gain  f. 

4 
1 

"3373 
181 

28044 

80 
50 

May 
jjune 

4 

8 

13 

18 

25 
1 

//   Mer'ts  Bank  Stock 

//   Sundries 

//         // 

//  2d  Co.  Sales 

K   Cash 

//      // 

//   Sundries 

11 
12 

750! 
355  56 
140 
106  05 
18  90 
70 
1176  32 

/ 

1 

25 

//   Bills  Receivable      13 

180 

/ 

II   1st  Co.  Sales 

14      471 25 

/ 

> 

30 

//   Sundries        ^«»«^" 

//   Amount  to  date 
H   Mdse.                 fol. 
M   Ship  Hudson    .  u 

'  3669  13 

10969  41 
1  13743  12 
6    4150 

/  » 

H   Commiss'n  SS  " 

8    2736  77 

31599 

30 

28044.fi0 

31599 

30 

are 
lole 

•ent 
iges 
r  in 

eby 
)wn 

by 

l.Why 

2.  Whs 

I 

3.  Wha 

a 

4.  As  8 

1 
i 

istl 
it  ar 
iexe( 
it  is 
iccot 
I  gei 
Icco 

QtO  1 

See  Profit  &  Loss  Account,  j 
lis  account  footed  on  both  sides 
e  these  transfers,  and  why  is  th 
i  to  them? 

the  object  for  bringing  these 
int? 

leral  rule,  no  entry  passes  from 
ant:  neither  has  it  any  balanc 
aew  account :  is  there  no  except 

).36. 
Jun< 
e  nc 

tran 

Bal 
e  to 
on  t 

3  30? 
)te"fol." 

Bfers  to  t 

ance  to  t 

bring  do 

0  this  rul( 

— 

an- 

hin 

his 
wn 

3?      1 

i 
1 

1 

l.The 

P 

c 

2.  The 

a 

'      { 

3.  To 

a 
I 

4.  The 

Be  \i 

lace 
olun 
yar< 
coon 
rom 
be  6) 
com] 
acer 
yth 
re  s 
artn 

'ere  the  additions  for  the  Trial 
d  there  to  save  the  trouble  of  ad 
an  again  after  the  transfers  are  i 
}  the  gains  and  losses  fouijd  by  cl< 
nts  named.  "  Folio"'  distinguishes 
those  of  the  Journal,  which  are  i 
ime  column. 

jlete  our  account  of  gains  and  lo 
tain  our  net  increase  or  decrease 
e  small  marginal  figures. — Note 
ire  but  few  exceptions,  save   i 
ership  settlements. — Part  II.,  p. 

Ball 

ding 
nade 
)sing 
5  the 
)lace 

isses, 
of  c 
4,  M. 
bhose 
177. 

ince,  and 

up  the  wl 

'  the  difiFei 
Ledger  ps 
d  togethe 

and  ther 

[ipital,  she 

Ise.  p.  33. 

created 

Dr. 


JAMES 


WALKER. 


180T.   I       I 

Mar.    5  To  Mdse., 

30    '/  3d  Co.  Adventure. 
Si   II  Sundries, 


Apr. 
May 


6 
10 
111 


600 

2500 

600 


3700 


1887. 


Jan.  m  By  Warden  &  Bell, 

Mar.     2.  //  Sundries, 

Apr.  ^0    II  3d  Co.  Adventure, 


2 
5 
9 


Cr. 

500 
1200 
2000 

3700 


B.  MORRIS' 


SALES. 


1887. 

Feb. 

1  To  Sundries, 

5    //  Cash, 

12    II      II 

20    //      II 

Mar. 

12    //  Sundries, 

Repeat  Rule  X.,  p.  41,  and  see  Note  3,  p. 

How  is  Morris'  net  proceeds  found  when  all  the  goods  are 

sold? 
How  are  consignment  accounts  closed  and  reopened  when 

the  Ledger  is  closed  with  part  of  the  property  on 

hand,  and  no  sales  rendered? 
How  if  you  render  account  sales  of  the  part  sold? 


1867.         j 

Feb.  '  5  By  Cash, 

9  '/  Bills  Receivable, 

18  //  R.  Morris, 

'  !i  Bills  Payable, 

Mar.  ,12  //  Bills  Receivable, 

//  //  Mdse., 


1213D. 
iWTS. 


There  was  $9676  Balance  at  the  credit  of  the  account 
when  the  sales  were  completed.  Our  commission  is 
$606,  storage  and  advertising  $18.  After  deducting 
these  charges  the  remainder  belongs  to  Morris.  It  is 
therefore  evident  that  this  balance  of  $0676  belongs  to 
these  three  accounts.^-See  Journal  entry  March  12,  p. 
83,  and  Account  Sales,  p.  117. 

They  close  and  re-open  by  Double  Balance. — See  Commis- 
sion Sales  acct.,  Part  II.,  p.  169. 

The  acct.  closes  as  above,  and  does  not  re-open  until  the 
sale  of  the  goods  on  hand  recommences. — Note  4,  p.  68. 


SHIPMENT  TO 


(J.  Taylor  &  Co.) 


NEW  ORLEANS. 


1867.  !       ' 

Feb.  12  To  Sundries, 
Mar.  12    //  Profit  &  Loss, 


5800 


Repeat  Rule  XI.,  p.  41,  and  Rule  11.,  p.  99. 
1.  What  kind  of  an  account  is  this,  and  why  was  it  closed  on 
the  12th  March? 


18flT.  '       ! 

Mar.  12  By  Mdse., 


6     5800 
5800 


1.  It  is  a  property  account,  and  was  closed  on  the  12th  March 
because  full  returns  were  then  received. — Note  5,  p.  8Ql 


SHIPMENT  TO 


(Colnmbia) 


LIVERPOOL. 


1867. 

Apr. 


5  To  Sundries, 


June  30  To  Bal.  bro't  down. 


1867. 

J  une 


30 


By  Balance, 


£13    NHio' 


1.  When  the  accounts  are  to  continue  in  the  same  Ledger,    ;     1.  It  would;  but  I  wish  to  show  the  universal  application  of 


would  it  not  have  answered  as  well  to  have  made  the 
entry  in  the  Balance  account,  without  closing  and  re- 
opening this  acct.  ? 


my  rule  for  closing  all  property  accounts  belonging  to 
ourselves.  This  example  differs  from  any  previous  one, 
as  the  property  has  produced  no  returns. — Rule  LL, 
p.  99. 


I 


106 


107 


Ill 


a 


8    Dr. 


JOHN 


(Hew  Orleans.)      TAYLOR  &  CO.     Or. 


18C7. 

Feb.  12  To  Sundries, 
Apr.  10    ^        N 

K  It 


7438.33 
5693.05 


1745.28 


June  30 '  To  Bal.  ^  %  rendered, 


Seo  Form  n.,  p.  116,  Morris'  acct.,  p.  106. 


3 

8 
9 
9 


644' 
1210 

604 
4980  33 

7438  33 


1807. 


Apr.  !15'  By  2d  Co.  Shipm't  New 
Orleans  to  London, 


1745 '28 


May 

June 


18 

30 


91   1600 


»  2d  Go.  Sales,    6693.05 
//  i>:iliin>  \ 


11 

o 
O 


l'^ 


4093  05 

1745i28 


7438  38 


COMMISSION 


ACCOUNT. 


1887. 


June  30 


To  Profit  &  Loss,   fol. 


6 


2736  77 


1867. 

Feb.  12  By  J.  Taylor  &  Co., 

25  //  Cash, 

Mar.    5  //  1st  Co.  Sales, 

12  //  K.  Morris'  Sales, 

Apr.    5  II  E.  Morris, 

10  //  J.  Taylor  &  Co., 

II  Sundries, 

May  18  //  2d  Co.  Sales, 


27361,77 


1.  To  what  class  of  accounts  does  this  belong? 

2.  Why  not  carry  the  entries  to  Profit  &  Loss  at  once? 

3.  How  is  this  account  kept  ? 

4.  How  is  it  closed  ? 

6.  Are  there  not  sometimes  entries  made  at  this  account  that 
have  to  be  brought  down  into  new  account? 


31 


June'  1 
12 
25 

28 


//  K.  Morris, 

»  II 

II  Sundries, 

//  K.  Morris, 

//  1st  Co.  Sales, 

//  Estate  of  A.  Lenox, 

//  Sh.Eoscoe&  owners 

2736.77 


3 

4 
6 

7 
8 

9 

11 
12 

13 

14 


33 
5 

72 

606 
105 

6 

3 

396 

396  S5 
278^2 

40 ' 
162 

18 
357  50 

40 
_  217  50 

2736  77 


1.  It  is  a  branch  of  the  Profit  k  Loss  acct. 

2.  We  could  not  then  know  what  we  made  by  this  branch  of 

our  business.— See  Note  4,  p.  24. 

3.  By  debiting  it  for  returned  commissions,  and  for  what  we 

may  lose  by  guaranteeing,  and  crediting  it  for  all  we 
earn  by  agencies. 

4.  Always  to  Profit  &  Loss— never  To  Balance. 

5.  Very  seldom,  except  in  partnership  settlements :  these  are 

explained  in  the  next  part,  p.  177. 


NEW  YORK 


INSURANCE  OFFICE. 


1807. 

Feb.  28  To  Mdse., 


I      11118*7. 

5     3690       I  Mar.  12  By  Cash, 

ir=r 


L  To  which  class  of  accounts  does  this  belong  ? 


6     3690 


1.  Although  it  is  not  with  a  person,  yet  it  is  a  personal  acct 
and  is  kept  in  every  respect  similar. 


108 


Dr. 


FIRST  COMPANY  SALES. 


Gr, 


1867. 

Mar.  I 


20 
25 

28 
May  4 
June  25 


To  Wm.  Hay, 
u  J.Walker, 
a  Sundries, 


To  Mdse., 
II  Cash, 
II  Mdse., 
II  Merch.  B'k  Stock,  11    2500 
//  Sundries,        uj^.    14    7800 


5 

6 


8l 


450 

600 

1830 

2880 


1867. 

Mar. 


2  By  Sh.  Roscoe,  my  i,  ,    5    2880 

•8807 


1050. 
1830. 


2880 


3240 
4500 
2000 


20040 


See  Notes  5  and  6,  p.  42,  and  Rule  XII.,  p.  43. 

1.  Why  was  this  account  closed  on  the  5th  of  March? 

2.  How  and  where  does  this  account  close  when  all  is  sold? 

3.  How  if  there  be  none  sold,  or  if  the  sales  are  not  more  than 

enough  to  cover  the  charges  you  have  advanced  ? 

4.  How  if  there  be  more  than  enough  sold  to  cover  charges? 


5.  Why  is  this  distinction  made  after  the  charges  are  cov- 

ered? 

6.  What  is  done  with  the  balance  entry  ? 


Apr.  10  By  Sundries,  9  9500 

//      //  IstShip'ttoBost'n,    9  3240 

22    //  Sundries,  10  4800 

June  25    //  Mdse.,  S'  1-^  2500 


7800. 


20040 


1.  Because  we  rendered  account  sales  and  settled  with  our 

partner  at  that  date. — Note  5,  p.  80. 

2.  It  closes  To  Sundries,  by  a  Day  Book  entry. — See  Note  3, 

p.  80,  and  Note  2,  p.  96. 

3.  It  closes  By  Balance,  the  charges  being  payable  out  of  the 

first  sales. 

4.  Credit  the  account  first  By  Balance  for  our  proportion  ot 

the  part  unsold,  then  close  To  Sundries  as  if  all  were 
sold. 

5.  The  amount  sold  afterwards  is  pactlj  ours  and  partly  our 

associate's. 

6.  It  is  brought  down  or  transferred  like  all  other  balance 

enlxies. — See  Part  n.,  p.  177. 


SHIP 


(Myi) 


ROSCOE. 


1867.  : 

Mar.    2 1  To  Sundries, 
June  30    ii  Profit  &  Loss, 


5 

14 


1       !|l    1867.  '  '       H 

5000       ;  June  28  By  Sh.Roscoe&  owners  14    1808  13 
3308  13 1  30    //  R.  Morris,  i  w  J!  6500 

830813 


I   830813 

li=U 


1.  To  what  class  of  accounts  does  this  belong? 


1.  It  is  a  property  account,  and  is  conducted  and  cloeed  by 
the  same  rules  as  all  other  property  accounts. 


SHIP  ROSCOE 


\ 


AND  OWNERS. 


1867.  ' 

Mar     4|  To  Sundries, 
June  28    //        // 


5 

14 


1250  i 

7450 

8700' 


!    1867.  '       ' 

i  Mar.    5  By  Cash, 

'  May     4:    II      II 
June  28    '/  Sundries, 


1.  What  kind  of  an  account  is  this? 

2.  How  is  it  closed? 


3.  Could  this  and  the  last  account  not  be  kept  under  one 

head  upon  the  same  principle  as  Ist  Company  Sales? 

4.  Why? 


6 
lOi 
14 


1800 
4200 
2700 

8700 


1.  It  is  conducted  under  the  rules  for  personal  accounts. 

2.  If  the  debit  side  be  the  largest,  close  By  Balance ;  but  if 

the  credits  be  the  largest,  close  To  Sundries,  as  on  the 
28th  of  June.— See  Part  II.,  p.  177. 

3.  Not  without  the  risk  of  much  confusion. 

4.  Because  the  credits  of  the  former  account  are  private  pro- 

perty; but  the  credits  of  the  latter  are  joint  property, 
and  could  not  therefore  be  placed  in  one  account. 


109 


10       Dr. 


ESTATE 


LENOX. 


Gr. 


1867. 

Mar.  16  To  Cash, 

17    '/      w 
May  31    //  Bills  Receivable, 
June  28    //  Commission,    389o. 

30    //  House  49  Cedar  St.. 


u 


II  Balance, 


f. 


7 

2500 

;   10 

12 

i  1340 

14   40 

10,  140 

13 

'20010 

33040 

- 

1.  What  is  the  object  of  this  account,  and  how  is  it  kept  ? 


2.  How  docs  it  close  and  reopen  ? 

3.  SapiK)3e  the  time  has  arrived  when  we  have  to  pay  over 

the  above  balance,  §29010,  to  the  two  legixtees,  to  each 
one  half,  and  R.  Lenox  takes  the  house  in  Cedar  Street 
at  its  valuation  as  part  payment^  and  C.  Lenox  the 
bank  stock,  also  at  our  valuation,  as  part  payment  of 
her  legacy ;  and  we  pay  over  each  the  remaining  bal- 
ance due  them  in  cash,  how  do  we  close  all  these  ao- 
cooiits? 


1M7. 1       I 

Mar.  12  By  Sundries, 

20    //  B.  Receivable,  32540. 
June  30    n  City  Bank  Stock,  f. 


By  Balance, 


131200 
1340 
10   500 


33040 
129010' 


1.  It  is  to  show  the  details  of  our  administration  of  the  Lenox 

Estate,  and  is  opened  and  conducted  like  a  personal  ac- 
count. 

2.  After  it  has  received  its  transfers  from  its  branches — see 

the  two  next  accounts — then  close  as  a  personal  acct. 

3.  By  a  Day  Book  enti-y,  thus — 

Lenox  Estate  To  Sundries  to  close  Acct.,  $29010. 
To  House  49  Cedar  St.,  conveyed  to  R.  Lenox  for    .    .  12000 


R.  Lenox,  amount  already  paid  per  acct. 
"  Cash  paid  R.  Lenox  for  balance  of  his  Legacy 
"  City  Bank  Stock,  conveyed  to  C.  Lenox  for  . 
"  Charlotte  Lenox,  for  amount  paid  per  acct.  . 
"  Cash,  now  paid  balance  of  her  Legacy  .    .    . 


800 

1705 

10000 

500 

4005 


HOUSE  49 


(Lenox  Estate)       CEDAR  STREET. 


1867.  i 

Mar.  12'  To  Estate  of  A.  Lenox, 

17    '/  Cash, 
June,  28    //      //  S; 


140. 


June  30  To  Balance, 


14 


12000 


1.  What  is  this  account  debited  and  credited  for? 

2.  How  does  it  close '. 

3.  Why  not  close  To  or  By  Profit  &  Loss  ? 


1887. 

May 

June 


1 

30 


By  Cash, 

I,     ;  .     >.-,  12300.      f" 

II  Estate  of  A.  Lenox, 


10'    300 

13  12000 
10!     140 

12440 


1.  Debit  first  for  its  value,  and  for  what  it  costs  afterwards , 

credit  for  what  it  brings  in  by  sale  or  rent. 

2.  If  unsold,  credit  first  By  Balance  for  the  value ;  then  close 

To  or  By  Lenox  Estate. 

3.  The  gain  or  loss  is  not  ours;  it  belongs  to  the  estate. 


CITY 


(Lenox  Estate) 


BANK  STOCK 


1867. 


Mar.  12  To  Estate  of  A.  Lenox,    T 10000 
June  30    //      a  u         f.  10      500; 


June 


301  To  Balance, 


10500 


10000' 


1807. 

May 

June 


1 

30 


By  Cash, 

//  ijuiuuce, 


f. 


10 

13 


500 

iOOOO 


10500 


CHARLOTTE      (Legatee  of  Lenox  Estate)        LENOX. 


1867. ;     i 
Mar.  31  To  Cash. 


8 


500 


You  may,  if  you  choose,  close  this  and  the  following  account  By  Balance,  like  "  Shipment  to  Liverpool,"  p.  107;  but  I  have 
shown  at  Hartwell's  Account,  p.  112,  Hhat  there  is  no  necessity  for  it. 


ROBERT 


(Legatee  of  Lenox  Estate) 


LENOX. 


i80r.  I     I 
Mar.  31  To  Cash, 


8 


800 


110 


Br.  2d  Co.  Shipment  to      (R.  Morris) 


London. 


Cr.  11 


1867. 

Apr.  10  To  Sundries, 

1 1   //  Profit  &  Loss, 


June 


1867. 


9    4980  34    June'  1  '  By  R.  Morris, 


12 


649  66 


5630 


See  Note  2,  p.  86,  and  Note  4,  p.  92. 
1.  How  is  this  account  kept? 


12    5630 
5630 


1.  It  is  kept  and  closed  in  all  respects  like  any  other  consign- 
ment or  property  account. 


1st  Co.  Shipment  to     (C.  Harlwell) 


Boston. 


1867.  ' 

Apr.  10  To  Sundries, 
June    1.   II      II 


9    3300 
13    3180 


1867.  ' 

June  1    By  C.  Hartwell, 


6480 


See  Note  3,  p.  86. 
1.  What  is  this  account  debited  and  credited  for? 


1.  It  is  debited  for  our  proportion  of  the  first  cost  and  the 
whole  charges,  and  credited  for  the  whole  returns. 


2.  Why  not  credit  for  our  own  share  of  the  returns  only  as  in         2.  Because  Hartwell  accounts  to  us  here  for  Hay's  sliare  as 
the  last  account?  lii  well  as  ours.    In  the  last  account  Morris  accounted  to 

each  partner  for  his  share. 


1st  Co.  Shipment  to    (Baring  &  Co.) 


LiverpooL 


1867. 

Apr.  15  To  Sundries, 
June  30    //  Profit  &  Loss, 


9 
14 


See  Note  3,  p.  96. 
1.  This  account,  like  the  last,  was  debited  for  our  share  of  the 
first  investment,  why  not  also  credit  it  for  the  whole 
returns? 


1867. 

June  28  By  Sundries, 


1.  In  the  last  account  we  had  charges  to  deduct  from  the  re- 
turns; in  this  we  have  none,  we  therefore  carry  Hay'a 
half  net  proceeds  at  once  to  his  credit. 


2d  Co.  Shipment  from    (R.  Morris)    New  Orleans  to  London. 


1867. 


Apr.  15  To  J.  Taylor  &  Co., 
June    1    //  Profit  &  Loss, 


9 
12 


1867. 

1600      TJune 
^26  66 

2126  66 


See  Note  5,  p.  86. 
1.  What  is  this  account  debited  and  credited  for  ? 


By  K.  Morris, 


12    2126  66 
2126  ^<^ 


1.  It  is  debited,  like  "2d  Co.  Shipment  to  London,"  foronr 
share  of  the  first  cost,  and  credited  for  our  proportion 
of  the  returns. 


3d  Company 


(J.  Walker) 


Adventure. 


1867.  I       ' 

Apr.  20  To  J.  Walker 
30 


May 


13 


H   Profit  &  Loss,  10      5001 

2500 


To  Mdse., 


11 


1500 


I.  Why  is  this  account  called  an  adventure  in  Co.? 


1867.  '       ' 

Apr.  30  By  J.  Walker, 


June  i  18 


By  Sundries, 


10    2500 j 

2500 
13    1500 


1.  To  distinguish  it  from  those  joint  accounts  of  wliich  W9 
are  the  managers  of  the  sales. — See  Notes  9  and  10, 
p.  42. 


Ill 


*        ) 


18      Dr.    2d  COMPANY 


SALES. 


Cr. 


1867. 

Apr.  20  To  Sundries, 
May  18    //        // 


10  7185 

11  8689 

15874 


See  Note  4,  p.  90. 
1.  How  is  this  account  condacted? 


18W.  ■       ' 

May  13  By  Sundries, 


18 


H 


II 


15874. 
7185. 


11    8500 
i|  7374 

15874 


Ml 

1.  In  all  respects  like  Ist  Co.  Sales,  p.  109.  We  account  to 
each  partner  for  his  share  of  the  net  proceeds.  S«v 
form  of  account,  p.  116. 


CASH 


ACCOUNT. 


1867. 


Bro't  forward,   fol.    2  15180  40 


1867. 


15180.40 
8058.60 

7121.80 


Apr.  30  To  Bal.  bro't  down, 

May     1    //  Sundries, 
j  4    //         II 

II  Merh.  Bank  Stock, 

8    //  Sundries, 

lis    //  Merchandise, 

'    n  Sundries, 

18    //  2d  Co.  Sales, 

//  Profit  &  Loss, 

2f     //  Sundries, 


15180  40 


31510.70 
2724J2 

28785.78 


7121  80 

10  1200     I 
7700 

11  500 
.  4200 

1500      I 
1640 
560 

12  18  90 
. 7070     i 

31510  70 


Bro't  forward,    fol.    2    7457  60 
Apr.  23  By  Bills  Payable,  8058.6o  10      601 

oU,    //  xi'iXi.  c.^A^v^v*  u^'.i'.i,         I    1I2I18O 


31  To  Bal.  bro't  down, 
June  12    //  Bills  Receivable, 
18     //  Sundries, 
//  R.  Morris. 


36801.48 
28010.48 


28785  78 
13    2100      j 
563 
5452  70 


May    4  By  Bills  Payable, 
81    // 


15180  40 


II 


31 

II 


10  2222  22 

11  202  70 


II  R.  Morris,       2724.92   12      300 


//  Bai.  earned  down, 


June  30  To  Balance 


See  Cash  Account,  p.  34,  and  Note  6,  p.  57. 
L  Why  is  this  account  balanced  every  month 't 


3690148 
11  8891- 


June  12  ByR.  Morris, 

18    //  Warden  &  Bell, 

II  Sundries, 

.25|    //  Bills  Receivable, 

w  1st  Co.  Sales, 

28    //  House  49  Cedar  St. 

,  30    //  Profit  &  Loss,  38oio.i8 


;^b785  78 


31510  70 


n 


II   Balance. 


f. 


13  7200 
lOOOOi 
1660 
800 
6971  25 

280 
1099  23 
S891 


14 


L3 


3690148 


1.  Because  it  must  always  conform  to  the  Cash  Book,  and  it 
is  easier  to  make  it  do  so  by  frequently  comparing  them. 


c. 


(fioston) 


HABTWELL. 


1867.         '  I  I 

June,  1 ,  To  1st  Co.  Ship't  g^     ' '  ' 

to  Boston,      »   '^^  12    6480 

1.  Why  is  this  account  not  closed  like  all  the  rest,  and  what 

is  done  with  the  balance  ? 

2.  Whould  there  be  any  irregularity  in  closing  it? 


1867. 

June  28  By  Sh.Roscoe&  owners  14    3616  25 

,     11  i 

1.  We  find  the  balance  by  the  small  pencil  figures  in  the  mar- 

gin, and  transfer  it  as  usual  to  the  balance  account;  but 
there  is  no  occasion  for  closing  a  person's  account  until 
you  have  a  settlement  with  him,  or  wish  to  transfer  his 
account  to  New  Books. 

2.  None ;  the  pupil  may  close  it  if  he  chooses. — See  Note  3. 

p.  113. 


Dr. 


BALANCE  ACCOUNT. 


Cr.     13 


1S67. 

June 


30 


To  Mdse.  fol. 

//  Bills  Receivable 

//  House  in  Br'dway 

//  R.  Morris 

//  Ship  Hudson 

//  Ship't  toLiverpool 

//  John  Taylor  &  Co.!  8 

//  House  49  Cedar st.  10 

//  City  Bank  Stock 

II  Charlotte  Lenox 

'/  Robert  Lenox 

//  Cash 

C.  Hartwell  10S294.84 


// 


6I044I5O 


12 


18128 
8680 

15000 
5676 

16000 
8010 
1745 

12000 

10000 

500 

800 

8891 

2863 


108294 


22 

1867. 

June 

1 
30 

59 

28 

75 

84 

ByWm.  Hay        fol.    3 
//    Bills  Payable  4 

//    Estate  of  A.Lenox  10 
//   Stock  for  n/c  1 

46750.34 


1081312 
6927  22 
29010> 
61544  50 


108294 


84 


112 


See  Notes  to  Balance  Account,  page  17  and  35. 
The  teacher  will  now  apply  the  examination  on  page  36  to  this  Ledger. 

1.  Remarks. — Referring  to  our  previous  instruction  in  closing  and  re-opening  accounts — 
Notes  5  and  6,  p.  9 — 1  to  7,  p.  18 — 4,  p.  32 — 6,  Stock  acct.,  p.  33,  and  7,  Mdse.  acct.,  p. 
33 :  we  may  repeat  that  re-opening  a  Ledger  means,  making  a  new  entry  of  all  the 
EFFECTS  AND  LIABILITIES,  in  the  heads  of  the  new  accounts :  and  the  new  accounts  re- 
commence immediately  under  the  closing  lines  of  the  old  ones — ^Note  6,  p.  5^ — or,  if  there 
be  no  space  there,  forward  under  a  new  head.* 

2.  We  have  closed  this  Ledger,  as  we  first  closed  the  introductory  one,  under  the  supposi- 
tion that  the  accounts  are  to  continue  in  the  same  book.  All  those  accounts  that  have  closed 
into  Balance,  are  therefore  re-opened  by  bringing  the  balance  (entered  in  red  in  the  old  ac- 
count) down  into  the  heads  of  the  new  accounts  in  black.  If  we  had  closed  with  the  view 
of  transferring  the  balance  to  a  new  Ledger,  then  this  one  must  remain  closed,  as  you  per- 
ceive at  the  second  closing  of  the  introductory  Ledger. 

3.  We  may  observe  here,  that  though  we  cannot  well  avoid  doing  so  in  teaching,  in  making 
up  the  Balance  Account  in  business,  it  is  unnecessary  to  close  any  personal  accounts  but 
those  with  whom  you  have  had  settlements ;  all  that  is  necessary,  is  to  find  their  correct 
balances  in  pencil  in  the  margin — see  Hartwell's  account  last  page — and  transfer  them,  as 
if  the  accounts  were  closed,  to  the  Balance  Account )  and  after  all  is  found  correct,  go  over 
all  those  accounts  requiring  addition,  and  in  place  of  closing  them,  only  foot  them,  noting 
the  footing  on  each  side  "  amt.  to  date,"  as  we  have  done  with  our  Profit  &  Loss  account 
before  the  transfers  were  made — see  p.  106.  Leave  all  the  personal  accounts  open  in  this 
manner,  to  receive  any  riew  entries  that  may  occur  until  you  settle  with  them ;  then  they 
must  always  be  balanced — Note  1.  Carter's  acct.,  p.  105.  To  exemplify  this  matter  fully,  I 
have  left  open  the  two  Lenox's  and  Hartwell's  accounts — p.  110  and  112;  but  I  have  found 
it  answer  the  purposes  of  instruction  better  to  direct  the  student,  for  the  first  time,  to  close 
all  the  accounts  without  distinction.  Ttis  is  indeed  the  readiest  way  to  explain  what  we 
are  referring  to. 

4.  Some  authors  pass  all  their  closing  entries  into  the  Journal,  and  post  them  from  thence 
into  the  Ledger.    In  business,  this  must  incur  additional  labor  without  any  apparent  advantage. 

5.  Before  proceeding  with  the  general  balance,  the  proof  or  trial  sheet  must  always  be 
first  taken  off,  in  business  practice.  I  always  take  my  trial  as  follows :  transfer  all  the  balances 
f/om  the  pencil  figures  in  the  margin  of  each  account,  to  their  respective  places  in  the  Profit 
&.  Loss  and  Balance  accounts ;  leaving  all  the  accounts  open  for  the  present.  Forward 
the  footings  of  the  Balance  account  only,  in  pencil.  Then  pencil  the  difference  of  Profit  & 
Loss  into  Stock,  and  Stock  in  the  same  manner  into  Balance,  which  must  then  be  even,  if 
all  be  correct :  if  not,  the  errors  have  to  be  sought  and  corrected  in  the  usual  manner.  In 
taking  a  trial  by  this  method  in  any  extensive  business,  much  labor  is  saved;  but  it  requires 
great  care  and  accuracy  in  every  step  of  the  process. 

*  As  with  our  merchandise  account,  page  101.  which  is  left  closed  for  tlie  student  to  re-opcn  upon  a  new  page. 

H  118 


r 


'I 


I II 


SET  II.— DUFFS  BOOK-KEEPING. 


Di, 


B.  Horns,  Esc[.,  in  Acct.  GuTTent  and 


Date. 

18C7.  ' 

Feb. 

18 

Fc 

20 

II 

Apr. 

5 

10 

II 

May 

25 

31 

u 
n 
II 

Items. 


Principal. 


June,  1 


{121 
!28 

m 


For  amt.  paid  your  Bill  at  sight  favor  R.  Banks 
accept'g  your  Bill  @  10  days,  favor  of  R.  Banks 
Invoice  of  Merchfindise  per  "  Cherub" 
your  J  Invoice  of  joint  Ship't  "^  "  Cambria'* 
amt.  collected  from  Capt.  Bowline 
Invoice  of  Shipment  to  you  "^  "  Columbia" 
Com'n  forwarding  80  packages  from  Hart- 
well  &  Thorndike,  of  Boston 
My  i  your  Acct.  Sales  joint  Shipment  from 

New  Orleans  .... 

My  i  your  Acct.  Sales  joint  Shipment 

*' Cambria" 

Banks'  Bill  on  Gibbs,  Son  &  Bright 
Baring  &  Co.'s  Remittance  on  my  acct. 
Freight  collected  by  you  for  ship  Roscoe 
n.  proceeds  my  \  Ship  Roscoe 
Bal.  of  Int.  Acct.  at  cr.  in  Acct.  Current  SS 


// 


4440 
2500 
2166 
4980 
2400 
5691 

40 


25 
33 

22 


II 


5676.59 


2126  66 


5630 

7218 
4000 
2500 
6500 


50192  46 


Whin 
Due. 


Balance  due  P.  Duff  this  day 


Errors  Excepted,  1 

New  York,  June  30th,  1867.  J 


1867. 

Feb. 
Mar. 
May 

Apr. 
Mar. 
May 

June 
Apr. 


June 

May 

May 

Aug. 


Tna. 


4.12 

3.25 

1.25 

12.20 

20  3.10 

31  1. 

^0 


18 
5 
5 

10 


INTE- 

B£ST. 


15 
30 


2.15 
2. 


97|68 
47i92 
19186 
66  40 
40  j 
2846 


26  58 


56 


30 


12i  .18 
10  1.20 
20  1.10 


i30 


5676  59 


!1 


2. 


2165 
33  33 

16^7 
651 
33  06 

487  91 


P.  Duff. 


1.  All  well-managed  mercantile  houses  render  statements  of  accounts  to  all  their  custom- 
ers and  correspondents,  and  settle  and  close  their  accounts  every  time  they  make  out  their 
balance  sheet.  The  above,  and  the  two  next  forms,  are  illustrations  :  this  one  embraces  all 
transactions  between  us  and  Morris  since  our  last  settlement — from  the  time  that  we  last 
balanced  our  books,  down  to  the  time  of  closing  them — 30th  June. 

2.  There  are  various  ways  of  stating  interest  accounts,  but  we  have  seen  none  that  presents 
all  the  particulars  with  so  much  clearness  and  simplicity,  and  in  so  little  space,  as  this  form. 

3.  The  heading  of  the  columns  explains  sufficiently  the  use  of  each  of  them.  The  state- 
ment is  drawn  from  Morris'  account  in  the  Ledger,  referring  from  there  by  the  dates  to  the 
Day  Book  for  particulars,  when  due,  &c.  The  dates,  items,  principal,  and  when  due  col- 
umns, are  filled  up  on  both  sides  first.  Then  compute  the  time  of  each  entry  from  the  date 
in  the  when  due  column  to  the  time  of  settlement— 30th  June,  allowing  three  days'  grace 
only  where  notes  or  acceptances  are  given  or  received. — See  notes  1  to  5,  page  45.  Extend 
this  time  into  the  time  column,  and  then  compute  and  extend  the  interest  into  its  column. 
Those  entries  which  we  do  not  know  the  day  upon  which  they  fall  due — such  as  that  on  May 
8th,  Cr.  side — are  left  blank  in  the  interest  column,  and  a  Day  Book  entry  will  be  made  to 
adjust  the  matter  as  soon  as  we  learn  the  particulars. 

4.  Observe,  the  date  in  the  when  due  column,  and  the  figures  in  the  columns  to  the 
right  of  it,  in  the  first  entry  on  the  30th  June,  Dr.  side,  are  to  be  written  in  red,  because 
this  $65  interest  belongs  to  Morris,  and  is  not  therefore  added  in  our  interest  column,  but, 
as  you  perceive,  is  carried  over  to  Morris'  interest  column.  By  the  terms  of  sale  which  he 
has  effected  of  our  \  Ship  Roscoe,  the  money  is  not  due  until  the  30th  August.— See  Day 
Book,  June  30,  p.  96.     This  account  is  made  out,  and  interest  upon  every  transaction  so 


MERCANTILE  FORMS.         V 

See  R.  Morris'  Acct.,  page  105,  and  Form  XX.,  p.  120. 
Interest  Acct.  to  30th  June,  1867,  with  P.  Duff.* 


Or. 


1M7. 

Jan. 
Feb 


Mar. 
Apr. 

May 

June 


1 

25 

28 

12 

20 

8 

18 
18 

ao 


For  Bal.  due  you  ^  acct.  rendered 


your  invoice  goods  ^  "  Herald" 

Proceeds  Ryan  &  Co.'s  Bill  on  Barclay 

my  dft.  to  Warden  &  Co.,  due  "^  your  Advice 

n.  proceeds  my  Acct.  Sales  your  goods'^  Herald' 

my  i  your  joint  Invoice  ^  "  Vixen 

my  dft.  favor  of  Walker 

your  i  my  Acct.  Sales  ^  "  Vixen" 

Ins.  recovered  upon  Ship't  1§i  ^^  Columbia"' 

Interest  in  Red  at  Dr.  side 

Balance  of  Interest  Acct.  44515.87 

Balance  to  debit  in  new  acct. 


Pbincipal. 

When 
1       Dqi. 

Tnuc 

1866. 

2000 

Dec.  31 

1867. 

6. 

8888 

88 

Apr.  10 

2.20 

1995 

Feb.  25 

4.5 

•  4444 

44 

May  30 

1. 

9052 

2 

1.28 

RUT. 


60 


,jf 


4000   Apr.  10  2.20 

4444441 

4093  05 

5565 


May  18  1.12 
June  18  .12 


33  06' 
5676  59 


118  52 
4156 
22  22 
87  50 
53  33 

28  65 
11  13 


487.91 
454.85 

33.0s 


■ 
46? 

%' 

60192 

487' 91 


adjusted,  that  the  balance  will  fall  due  in  cash  on  the  30th  day  of  June.  Therefore,  though 
this  principal  of  $6500  is  a  debit,  yet  its  interest  from  the  30th  June  to  30th  August  must 
be  carried  over  to  Morris'  credit.  When  sums  fall  due  in  this  manner,  subsequent  to  the 
date  of  the  account  on  both  sides,  extend  the  time  and  interest  in  red )  then,  before  you 
balance,  carry  over  the  balance  of  the  "  red  interest"  to  the  proper  side. 

5.  By  looking  attentively  at  the  small  marginal  figures  above,  you  will  see  how  the  balance 
of  the  interest  is  found  and  disposed  of  For  the  Day  Book  entry  of  it,  see  note  5,  p.  96. 
It  is  put  to  the  debit  of  our  interest  column,  to  close  it,  and  at  the  same  time  to  Morris' 
credit.  Afterwards  the  account  closes  in  all  respects  like  his  account  in  the  Ledger.  As 
there  is  no  entry  in  any  book  to  show  by  what  process  this  balance  of  interest  is  found,  a 
letter  press  copy  of  all  such  accounts  should  be  preserved  in  a  book  kept  for  the  purpose. 
We  have  left  the  exchanges  to  be  computed  at  the  end  of  the  year,  as  is  often  done  in  busi- 


ness. 


6.  In  stating  an  account  current  of  any  kind,  always  use  such  words  as  will  express,  in  the 
most  concise  and  perspicuous  terms,  the  origin  of  the  transactions,  without  any  regard  to  the 
technical  expressions  used  for  the  same  entries  in  your  Ledger. 

Those  who  desire  to  become  expert  at  making  out  accounts  of  this  kind,  must  persevere 
in  repeating  the  operation  several  times  from  their  own  books,  without  assistance  from  our 
forms. 

*  In  this  and  all  the  forms  let  the  student  use  his  own  name,  not  ours. — See  note,  p.  76, 


114 


115 


Ill 


m 


m 


(Ponn  II.) 


SET  II.— DUFF'S  BOOK-KEEPING. 

Messrs.  JOHN  TAYLOR  &  CO. 

IN  AOOT.  OUBBENT  WITH  P.  DUrr,  Dr. 


1807. 

Feb. 
Apr. 


12 
10 


IMT 

Apr.  p.  5 


For  our  invoice  of  Teas  ^  "  Jersey" 
w    Protecting  your  draft  on  Wood  &  Co.  for    . 
ft    Paid  Protest,  &c.,  $4.     My  ^  "^  ct.  commission  $6 

'/    Accepting  your  draft  at  10  days  on  Wood  &  Co. 

//    Protest,  $1.     My  ^  '^  ct.  commission  $3. 

n    Your  J  Joint  Shipment  to  London  *^  ''  Cambria" 


$1200 
10 


$600 
1 


Crs. 


>> 


$1600. 
4093.05 


5693 


1745 


For  my  i  your  Joint  Shipment  to  London 
May  'is  i   If    Your  |  my  acct.  sales  of  Joint  Shipment  "^  <'  Vixen 

I     I  Balance  due  P.  D.     Due  by  equation  1st  Jan.  last.* 

i     I    E.  E.,  New  York,  30th  June,  1867. 

Note. For  clearness  and  brevity  there  is  no  better  mode  of  stating  a  short  account  than  this.    The  subtraction  of  the 

credits  from  the  debits  is  made  to  show  the  balance.    When  the  balance  is  against  you,  the  form  has  to  be  a  little  varied,  as 
yon  see  by  Hay's  account  following.— See  page  103. 


644 
1210 

604 
4980 


7488 


33 

05 

28 


(Ponn  III.) 


WILLIAM  HAY,  Esq., 

IN  AOOT.  OUEEENT  WITH  P.  DUPP,  Dr. 


•am. 
Mar. 


Apr. 
May 


2 

16 

15    // 
4.  // 


For  your  half  Walker's  Invoice  of  Eice  Bot.  on  joint  acct. 
//    Carter's  protested  note  endorsed  by  you 

Your  half  joint  shipment  to  Liverpool  "^  "  Erie" 


Your  half  Finlay  &  Co.'s  Invoice  of  Pork  Bot.  on  joint  acct. 
June  |30  \  f    Balance  carried  to  your  credit  in  new  acct. 


1887. 

Feb. 
Mar. 


Apr. 
June 


12 
1 

5 

5 

15 

1 

28 


Crs. 


30 


For  your  Invoice  of  Table  Linen      ...... 

Cash  on  acct.  of  purchases  on  joint  speculation  . 
My  half  your  Invoice  of  Wines  sent  me  for  sale  on  joint  acct. 
Your  half  my  acct.  sales  of  goods  sold  on  joint  acct.    . 
Your  Invoice  of  Pork        ....... 

Amt.  advanced  by  you  in  joint  shipment  "^  "  Erie"     . 
Your  half  net  proceeds  of  joint  shipment  to  Boston     . 
Your  half  returns  of  joint  shipment  to  Liverpool 
Your  i  dividend  net  profits  of  Ship  Roscoe 


ji 


If 


By  Balance  due  Mr.  Hay  brought  down 
E.  E.,  New  York,  30th  June,  1867. 


12 


L6012 


L0813 


12 
12 


12 


*  This  is  ascertained  by  what  we  call  a  Compound  Equation.  As  we  do  not  see  the  rule  in  any  of  our  arithmetics,  we  sub- 
join it. 

Rule.— Find  the  equated  time  of  each  side  of  the  account  by  a  simple  Equation— note  2,  p.  68.  Then  multiply  the  lesser 
side  by  the  time  that  intervenes  between  these  two  equations,  and  divide  the  product  by  the  balance  of  the  account;  the  quo- 
tient is  the  time  to  count  back  or  forward.  If  the  balance  is  on  the  side  of  the  earliest  equation,  count  back  from  that  date ; 
but  if  it  be  on  the  side  of  the  latest  equation,  count  forward  from  that  date. 

Let  us  illustrate  the  rule  by  Taylor  &  Co.'s  account  as  above  stated — refer  to  the  Day-Book  for  the  time  when  each  amount 
falls  due.  We  find  by  simple  equation  that  the  Dr.  side  falls  due  April  6th,  and  the  Cr.  side  May  5th.  The  time  between  these 
equations  is  29  days :  and  the  lesser  side  of  the  account  is  $5693.  X  29  days  =  165.098  -h  $1745  (the  balance)  =  95  days.  Now 
the  balance  being  on  the  side  of  the  earliest  equation— April  6th,  we  must  count  back  from  that  date  95  days,  which  brings  us 
to  the  1st  January,  tlu>  dav  upon  which  this  balance  is  due. 

116 


MERCANTILE   FORMS.  * 

Form  IV.— See  Note  1,  p.  82. 
SALES  OP  MERCHANDISE  sold  by  order  and  for  account  of  E.  Morris,  Esq.,  London. 


1867. 

Feb. 


5 

9 


Mar. 


1867. 

Feb. 


Mar. 


18 
12 


Sold  for  Cash  to  J.  Lorillard — 

1  pipe,  120  galls.,  Port  Wine         .... 
Sold  to  William  Park  at  4  months — 

5  pipes,  600  galls.,  Port  Wine       .... 
Sold  for  Cash  to  W.  Bryant  &  Co. — 

3  pipes,  360  galls..  Port  Wine, 
Sold  R.  Banks  for  Cash — 

2  pipes,  240  galls.,  Port  Wine        .... 
For  net  proceeds  of  10  pipes  Port  Wine  sold  in  New  Or- 
leans, Rec'd  Barclay  &  Co.'s  acceptance  at  60  days 
from  date  for         ......         , 

Taken  to  my  acct.  the  remaining  9  pipes,  1080  galls.,  at 
market  price  @  60  days        .         .         .        @  ^3. 


12 

20 

12 


@  83. 


u 


ft 


3.50 
3. 


3.50 


360 

2100 


1080 


840 


4500. 
3240. 


CHARGES. 


// 
// 
tf 
II 

II 


Paid  Duties 

Freight  and  Primage  . 

For  Grauging 

Cartage  and  Cooperage 

Cartage,  Freight,  and  Insurance  of  10  pipes  shipped 
to  New  Orleans      .... 

R.  Banks,  for  overgauged  Wine  . 
Storage       ........ 

Advertising         ....... 

Commission  and  Guarantee  5  per  cent,  on  $12120 

Net  proceeds  due  in  Cash  2d  May 

E.  E.  New  York, 
March  12,  1867. 


% 

2222.22 

167.78 

1.50 

3.50 

28. 

21. 

3.50 

14.50 

606. 

i 


p.  DUFP. 


The  Account  Sales  is  always  drawn  from  the  Commission  Sales  I>ook;  or,  if  that  book  i» 
not  kept,  from  the  Day  Book.  No  entry  whatever  ought  to  appear  in  the  account  but 
what  relates  to  the  sales;  and  nothing  should  appear  in  the  charges  but  the  expenses 
attending  the  Sales. — See  Note  3,  p.  68. 

The  rule  for  equating  the  time?  is  given  on  page  68.  Or  the  student  may,  if  he  prefers 
them,  work  by  those  given  in  his  Arithmetic;  but  I  would  recommend  him  to  prac- 
tise upon  the  one  he  intends  to  use  until  he  can  operate  with  dexterity  and  accuracy. 

When  you  make  out  an  Account  Sales,  with  part  of  the  consignment  unsold,  give  a  conciPe 
statement  of  the  goods  unsold  at  the  foot  of  the  account. — See  Note  4,  p.  68. 


7740 


12120 


3068 


9052 


117 


I^vfi 


•  SET  II.— DUFF'S  BOOK-KEEPING. 

Form  V.— See  Note  4,  p.  90. 

ACCOUNT  SALES  of  40  Bales  Brussels  Carpeting,  sold  for  the  joint  acconnt  of  P.  Duff  of 
New  York,  R.  Morris  of  London,  and  J.  Taylor  &  Co.  of  New  Orleans,  each  one-third. 


18«7. 

May 


1867. 

Apr. 


May 


13 
18 


20 


18 


Sold  to  Warden  &  Bell— 

120  pieces,  4250  yds @  62. 

Net  proceeds  of  55  pieces  sold  at  Austin  &  Co.^s  Auction 

Taken  to  my  own  account  the  remaining  55  pieces,  1907  yds.  @  $2. 


CHARGES. 


Paid  Duties  to  the  Custom-house 
//     Freight  and  Primage  per  "  Vixen"  . 
//     Insurance  against  fire  ..... 
ft     Cartage  and  labor    .         .         .         i         . 

Storage  $3,  Advertising  $10 

Commission  2^  per  cent,  on  $15874 

Net  proceeds 

Of  which  my  i  is 

w        K.  Morris'  do.  at  his  credit  due  this  day 
»        J.  Taylor  &  Co.  do.  do. 

E.  E.  New  York,  )  , 

May  18,  1867.  J  .  ■' 


3000. 

150. 

33. 

2. 

13. 

396.85 


4093.05 

.  4093.05 

4093.05 

$12279.15 

Duff. 


8500 
3560 
3814 


15874 


3594 


12279 


85 
15 


Form  VI. — A  Foreign  Bill  of  Exchange. — See  Note  6,  p.  76. 
Exchange  for  £1000  Sterling.  New  York,  February  25,  1867. 

Sixty  days  after  sight  of  this  our  first  Exchange  (second 
and  third  not  piiid),  pay  to  the  order  of  Peter  Duff  One  Thousand  Pounds  Sterling, 
for  value  receiyed,  and  place  the  same  to  account  as  per  advice  from 
To  Egbert  Morris,  Esq.,  |  Yours,  respectfully, 

Merchant,  London.        j  Baker  &  Fox. 

Form  VII.— An  Inland  ^.ill,  on  Draft.— See  Note  2,  p.  70. 
$1000.-^%  1  ^  New  Orleans,  December  10,  1866. 

Ten  days  afWw^Jit,  pay  to  the  order  of  Messrs.  Ryan  &  Dale  One  Thousand 
Dollars,' value  recei^f^  foyjiccount  of, 

To  Mr.  PETER,Dirf%  ^  *  Yours,  respectfully, 

Merchant,  ^^  York.  J  John  Taylor  &  Co. 

Form  VIII. — An  Order.— See  Jan.  24,  p.  72. 
$500.-jft5<>j  New  York,  January  24,  1867. 

Pay  to  the  order  of  Messrs.  Warden  &  Bell  Five  Hundred  Dollars,  for 
value  received,  for  Yours,  respectfully, 

To  James  Walker,  Esq.,  ")  p.  Duff. 

Merchant,  New  Yoi-k.      j 

Form  IX. — An  Order  for  Merchandise. — See  Note  3,  p.  70. 

I108.T%  New  York,  January  15,  1867. 

Pay  to  the  order  of  Mr.  Henry  Pryor  One  Hundred  and  Eight  Dollars, 
in  Merchandise  out  of  your  store,  for  account  of 
To  Mr.  Peter  Duff,     )  James  Carter. 

Merchant,  New  York,  j 

118 


MEECANTILE  FOEMS. 

Form  X. — A  Promissory  Note. — See  Note  4,  p.  72. 

S1515./g%.  New  York,  January  30,  1867. 

Sixty  days  after  date,  for  value  received,  I  promise  to  pay  to  the  order  of 
Mr.  Peter  Duff  Fifteen  hundred  and  fifteen  dollars,  y^u- 

William  Hay. 

Extensive  houses  now  generally  arrange  such  transactions  with  an  acceptance.     The  fol- 
lowing is  the  form : 

Form  XI. — An  Acceptance  for  the  above  transaction. 

$1515./o%.  New  York,  January  30,  1867. 

Sixty  day^  a^r  date,  for  value  received,  please  pay  to  my  order  Fifteen 
hundred  and  fifteen  Dcii^s,  jYo- 
To  William  Hay,  Esqufl   :  p.  Duff. 

Merchant,  New  Yor^j  ^ 
With  the  left  side  up,  Hay  Writes  across  the  face,  in  red  ink,  "  Accepted." 

Wm.  Hay. 
This  form  will  be  found  convenient  for  making  payable  at  a  particular  place — say  Phila- 
delphia.     The  drawer  then  says  "  pay  to  my  order  in  Philadelphia."      The  acceptor  must 
name  the  place  where  he  will  have  funds  to  take  it  up — thus,  he  writes  across  the  face. 
*'  At  the  Girard  Bank."  Wm.  Hay. 

To  negotiate  this  acceptance,  the  drawer  has  to  endorse  it  himself,  it  being  payable  to  his 
own  order. 


Form  XII. — ^A  Joint  Promissory  Note. 
^SOO./qO^.  New  York,  January  30,  1867. 

On  demand,  for  value  received,  we  or  either  of  us,  promise  to  pay  to  the 
order  of  Mr.  Peter  Duff,  Five  hundred  dollars.  Wm.  Hay, 

James  Carter. 

Form  XIII. — A  Receipt  in  full. — Note  4,  p.  70. 
New  York,  January  16,  1867.     Received  from  James  Carter  Five  hundred  and 
sixty  dollars  in  full. 

$560.^Oo'u-  P.  Duff. 

Form  XIV. — A  Receipt  for  money  on  account. — Note  2,  p.  84. 
$800.        Received  from  Peter  Duff,  Eight  hundred  dollars,  on  account. 
New  York,  March  31,  1867.  R.  Lenox. 

Form  XV. — A  Receipt  for  an  endorsement  upon  a  note. — Feb.  12,  p.  74. 
$2000.y%<5j.        Received  from  Mr.  Thomas  Edwards,  Two  thousand  dollars,  which  is 
endorsed  upon  his  note. 
New  York,  February  12,  1867.  \        P.  Duff. 

Form  XVI. — A  Receipt  for  a  promissory  note. — January  18,  p.  72. 
$600.         Received  from  Mr.  James  Carter,  his  note  at  twenty  days  for  Six  hundred 
dollars,  which,  when  paid,  will  be  in  full  to  date. 
New  York,  January  18,  1867.  P.  Duff 


$2100./^o^. 


Form  XVII.— An  Endorsed  Note.— Feb.  9,  p.  74. 

New  York,  February  9,  1867. 
Four  months  after  date,  for  value  received,  I  promise  to  pay  to  the  order 
of  Messrs.  Warden  &  Bell,  Two  thousand  one  hundred  dollars. 

Wm.  Park. 


Endorsed  notes  are  always  drawn  payable  to  the  endorser,  not  to  the  holder. 

119 


■I 


SET  II.— MERCANTILE  FORMS. 

Form  XVIII. — A  Letter  of  Introduction. 

New  York,  May  30,  1867. 
Dear  Sir, 

I  have  the  pleasure  of  introducing  to  you  the  bearer,  my  much  esteemed 
friend,  William  Hay,  Esq.,  Merchant  of  this  city.      While  in  London  he  wishes  to  confer 
with  you  upon  some  business,  the  nature  of  which  he  will  himself  explain  to  you. 
Kecommending  Mr.  Hay  to  your  usual  kind  attention,  I  remain, 

Dear  Sir, 
To  KoBERT  Morris,  Esq.,  )  Yours,  Kespectfully, 


Merchant,  London. 


P.  Duff. 


Form  XIX. — ^A  Letter  of  Credit. 

New  Orleans,  March  30,  1867. 
Dear  Sir, 

If  the  bearer,  Mr.  James  Draper,  desires  to  make  any  purchases  of  merchandise 
of  you  on  credit,  you  may  consider  us  responsible  to  you  for  the  payment  of  the  same,  to  any 
amount  not  exceeding  One  thousand  dollars.  In  the  event  of  his  failing  to  make  his  pay- 
ments according  to  agreement,  we  require  you  to  give  us  timely  notice  of  the  same.    We  are, 

Dear  Sir, 
To  Mr.  Peter  Duff,      ]  Yours,  Kespectfully, 


Merchant,  New  York. 


} 


John  Taylor  &  Co. 


Form  XX. — ^A  Letter  with  an  Account. — See  Form  I.,  p.  115. 

New  York,  June  30,  1867. 
Dear  Sir, 

Inclosed  I  hand  you  your  account  current  balanced  by  $5676.59,  in  my  favor 
due  this  day ;  to  which,  if  you  find  it  correct,  please  make  your  books  conform.  I  am  with- 
out any  of  your  favors  to  reply  to,  but  remain. 

Dear  Sir, 
To  II.  Morris,  Esq.,  \  Yours,  Respectfully, 

Merchant,  London.  J  P.  Duff. 


Form  XXI. — A  Letter  of  Advice. — See  Note  5,  p.  84,  and  Note  1,  p.  86. 

New  York,  April,  10,  1867. 
Gentlemen, 

I  have  to  inform  you  that  I  have  this  day  paid  your  bill  of  $1200,  on  Sidney 
Wood  &  Co.,  which  was  protested  for  non-payment.  Your  bill  of  $600  on  the  same  parties, 
has  also  made  its  appearance,  and  the  drawees  having  apprised  rae  of  their  inability  to  give 
protection  to  your  signature,  I  have  accepted  for  your  honor  and  will  take  care  of  it  at  maturity. 
Bill  paid  $1200.  Expenses  $4.  Commission  ^  per  ct.,  $6.  Due  this  day  $1210. 
Bill  accepted  supra  protest  $600.  Protest  $1.  Commission  $3.  Due  23d  inst.,  $604 
which  amounts  please  place  to  credit  of, 

Gentlemen, 
To  Messrs.  John  Taylor  &  Co.,  |  Yours,  Kespectfully, 

Merchants,  New  Orleans.  j  P.  Duff 


Form  XXII. — A  Letter  of  Advice. — See  Note  4,  p.  76. 

London,  December  24,  186(5. 
Dear  Sir, 

In  my  respects  of  the  18th  instant,  I  inclosed  you  an  invoice  and  bill  of  lading 
of  a  consignment  of  30  Pipes  Port  Wine  shipped  per  "  Herald,"  which  sailed  on  the  19th. 
I  have  now  to  advise  you  that  I  have  this  day  valued  upon  you  at  10  days  on  account  of 
the  same  for  $2500  in  favor  of  Kobert  Banks,  which  please  honor  for  account  of 
To  Mr.  P.  Duff,  )  Yours,  Respectfully, 

Merchant,  New  York.  J  R.  Morris. 

120 


DUFFS  BOOK-KEEPING. 


PAKT  II. 


121 


,  1 


1 

':       T  ■ 

i' 


1' 

i! 


il  1, 
ij 

il 

1 1 
I 

I  i 

i 


.!     '1 


DUFFS  BOOK-KEEPING, 


PART  IL 


EXEMPLIFYINa  PARTNERSHIP  BOOKS 

Upon  two  different  methods,  for  greatly  abbreviating  and  simplifying  tbe  usual  process  of 
Double  Entry  Book-keeping.  Adapted  to  the  most  limited  retail,  or  to  the  most  ex- 
tended wholesale  business ;  with  the  whole  of  the  auxiliaries,  with  part,  or  without  any  of 
them.     Illustrating  a  new  method  of 

PROVING  THE  LEDGER:* 

By  means  of  which,  no  entry  once  made  upon  the  Day  Book  or  any  op  the 
Auxiliaries  can  afterwards  be  omitted  at  any  stage  of  its  passage  to  the 
Ledger  without  certain  detection.     Embracing  also  an  exemplification  of  the 

PRIVATE  LEDGER, 

By  means  of  which  the  results  of  the  business  can  only  be  known  to  the  partners. 

Practical  directions  for  transferring  the  contents  of  the  old  Ledger  to  the  new 
one,  illustrating  the  formation  of  a 

NEW  FIRM  BY  THE  INTRODUCTION  OF  A  NEW  PARTNER. 

Also,  particular  directions  for  conducting  partnership  books  during  settlement,  after 
dissolution. 

MAKING  OUT  PARTNERSHIP  BALANCE  SHEETS. 


p 


Rates  op  Commission  and  Storage  established  by  the  Chambers  of  Commerce  of  the 
cities  of 

NEW  YORK  and  PHILADELPHIA,  with  various  additional  matters  of  important  in- 
formation for  men  of  business. 

*  We  do  not  present  the  six-columned  Day  Book  or  Journal  as  original.     Our  method  of  proving  the  Books 
is  applicable  to  any  form  of  Day  Book  or  Journal. 

123 


V- 


ii 


I  I 


SET  I.— PART  II.— PARTNERSHIP  BOOKS. 


PRELIMINARY  REMARKS. 

1.  We  now  propose  to  supply  what  other  authors  have  omitted — an  arrangement  of  the 
Double  Entry  principle,  practically  adapted  to  retail  business, — a  method  divested  of  the 
cumbrous  machinery  of  Auxiliaries,  the  dilatory  intervention  of  the  Journal,  and,  above  all, 
the  voluminous  masses  of  writing  created  by  the  common  mode  of  keeping  and  posting  the 
Cash  and  Merchandise  accounts. 

2.  Though  the  following  method  is  conducted  strictly  under  the  first  fundamental  rule  of 
Double  Entry — equal  debits  and  credits — it  will  be  readily  seen  that  a  great  saving  of  books, 
writing,  posting  and  checking  is  effected,  with  increased  security  against  error,  with  the  full 
benefit  of  all  the  information  obtained  by  the  ordinary  Double  Entry  process,  and  with  the 
convenience  of  having  your  personal  accounts  daily  posted  up  and  ready  for  settlement  at  a 
minute's  notice.     Let  us  state  its  advantages  over  the  common  process  more  distinctly. 

Ist. — Dispensing  with  all  books  but  the  Day  Rook  and  Ledger. 

2d. — Writing  in  the  cash  and  merchandise  accounts  in  the  Ledger  reduced  to  about  one 

LINE   FOR   ONE   HUNDRED. 

3d. — Checking  the  cash  and  merchandise  posting,  reduced  in  the  same  proportion. 

4th. — A  yearly  saving  of  forty  or  fifty  folios  of  the  Ledger. 

5th. — Increased  security  against  error,  as  no  entry  once  entered  upon  the  Day  Book  can 

be  omitted  in  posting  without  detection. — See  Note  1,  p.  135. 
6th. — Daily  posting  of  the  personal  accounts,  thereby  having  them  always  ready  for 

settlement. 

3.  These  are  considerations  which  entitle  this  method  to  the  particular  attention  of  all 
retailers.  And  though,  in  ordinary  retail  business,  the  Day  Book  and  Ledger  are  the  only 
books  ab.solutely  required,  we  shall  show  hereafter,  that  as  the  business  increases  this 
arrangement  will  not  be  disturbed  by  the  introduction  of  any  one,  or  all  the  auxiliaries  in 
use.  It  is  therefore  not  only  adapted  to  the  most  minute  retail  business,  but  to  the  most 
extensive  operations  of  commerce. 

4.  No  person  should  attempt  to  learn  the  science  by  commencing  here.  If  he  is  unac- 
quainted with  its  principles,  he  must  first  acquire  them  by  the  course  of  instruction  in  the 
preceding  part  of  this  work.  Afterwards  the  form  of  these  books,  although  somewhat  com- 
plicated in  appearance,  can  be  understood  and  practised  with  ease.  Indeed,  after  the  Day 
Book  Entry  is  once  correctly  made,  the  subsequent  steps  partake  much  of  the  simplicity  of 
Single  Entry.  But,  for  obvious  reasons,  no  one  should  attempt  to  apply  it  to  business  until 
he  has  gone  through  a  course  of  exercises. 

5.  The  following  Day  Book  is  ruled  with  six  columns;  the  debits,  as  usual,  always 
occupying  the  left,  and  the  credits  those  on  the  right.  The  column  next  the  writing  on  the 
left  and  that  on  the  right,  as  you  perceive  by  the  post  marks,  are  the  only  ones  that  are 
posted  in  detail.  The  cash  and  merchandise  amounts,  both  debits  and  credits,  are  forwarded 
from  page  to  page  until  the  30th  March — p.  128.  From  there  they  are  posted  in  one  sum, 
afiixing  to  it  the  post  mark  as  usual. 

In  making  the  Day  Book  Entry,  care  must  be  taken  to  extend  all  cash  and  merchan- 
dise entries  into  their  own  columns.  And  those  who  are  very  expert  in  addition,  and  who 
desire  to  keep  their  work  free  from  erasures,  should  foot  and  prove  the  addition  first  upon 
a  waste  sheet  of  paper,  taking  care  afterwards  to  keep  each  set  of  figures  under  its  own 
column. 

6.  In  making  an  entry,  the  same  form  of  expression  is  used  as  upon  a  common  Journal. 
In  entering  an  invoice  of  sale,  the  particulars  are  first  short-extended,  like  Evans's  or  But- 
ler's entries  on  the  next  page. 

7.  Observe,  the  Cash  and  Merchandise  accounts  can  be  posted  monthly  or  yearly,  as  may 
suit  your  convenience,  recollecting  that  every  time  these  accounts  are  posted,  it  makes  a 
period  in  the  amounts  brought  forward  on  the  Day  Book,  and  the  new  period  commences 
with  the  heads  of  the  columns  empty. — See  Note  1,  p.  128. 

124 


Diis. 


NEW  YORK,  January  2,  1867. 


Cbh. 


Mdse. 


3380 


Cash. 

mo 


3380 

Paid 
Bal. 


954 


4954' 


1 

1200 

400 

4 


271 


337  25 


50 


50 


50 


25 


\U4 

2 


10 


2247 
4954 
3380 


2 


1700  50  10581 
3253  50 


Cash,  Dr.  to  Sundries, 
To  P.  Duff,  received  on  account  of  capital, 
"  W.  Gordon, 

If         

Mdse.,  Dr.  to  Sundries, 

To  T.  P.  Cope  &  Sons,  for  Invoice, 

"  Wm.  Hay,  for  Invoice, 

"  Cash,  paid  freight, 

==     5.  = 

Sundries  To  Cash, 

Expense  account  paid  laborers. 

T.  P.  Cope  &  Sons,  remitted  them. 

Wm.  Hay,  remitted  him. 

Exchange  account,  paid  Premium  on  drafts. 

„ __ 

Robert  Martin  (270  Bowery),  To  Mdse., 

1  pair  fine  Boots,  .....  $6. 
Repairing  two  pair  do.  .  .  .  .1. 
1  pair  Ladies'  Boots      ....     2.50 

f,  ; 

James  Carter,  To  Mdse., 

1  pair  Boys'  Shoes,  ....  $1.75 

Footing  1  pair  Boots,  ....     2.75 

If         

Robert  Evans  (Buffalo),  To  Mdse., 

12  pair  Boots,                        at  $8.  $96. 

24     "        "         Light,          "     6.  144. 

24     "    Boys'  Shoes,             "     1.25  30. 

Packing  case  and  cartage,  1.25 

======     10.  "~^ 

P.  Duff,  To  Cash  on  account, 

II        

James  Moore  (Pine  St.),  To  Mdse.,  1  pr.  Boots,* 

//         

Robert  Butler  (Albany),  To  Mdse., 

48  pair  Ladies'  Boots,  at  $2.       .  .  $96. 

60     "    Men's       do,      "     3.       .  .  180. 

60     "    Boy's        do.      "     1.       .  .     60. 

Box  and  cartage,         .         .        .  .       1.25 

,;  ZZZZZ 

Cftsh  To  Mdse.  for  sales  to  date, 
==z=     20.  = 

W.  Gordon,  To  Cash  on  account, 

//  

J.  Carter,  To  Mdse.,  for  2  pair  Shoes,  .        ,    $2. 

Amounts  forwarded, 

Cash, 

Merchandise 

Proof      


OBsh. 


1.  Pencil  the  cash  paid  under  the  amount  received,  and 
you  can  see  the  balance  as  often  as  you  desire. — 
See  Note  1,  p.  128. 

*  Entries  that  are  collected  before  posting,  are  marked 
80  in  the  folio  column,  and  the  pen  is  run  lightly  through 
the  figures  on  both  sides.  Omit  these  figures  in  the  ad- 
dition, and  dispose  of  the  cash  as  if  received  for  a  ready 
money  sale. 


2500 
1500 


2500 
800 


80 

1     I 

3605  50 


7300 
1700  50 
1580  50 


n 


9m 


171 


337  25 


4M 


954 


4 

1700  50  1580,50 


.10581 


125 


i 


i 


i 


I  I 


DBS. 


1  January  20,  1867. 


Cbs. 


MdM. 


3380 


"  Osah. 
4954 


2247 


94 


IM 


2 


Bro't  forward,    . 


R.  Martin  (270  Bowery),  To  Mdse.,  rep*g  Boots, 
31.  .^ 


I    I 


6 ,     I  i  1  I  P.  Duffy  To  Mdse.  for  1  pr.  fine  Boots, 


2  50   1    W.  Gordon,  To  Mdse.  for  1  pr.  Ladies'  Boots, 

I    il    U  -   Feb.  1.    == 


'  Mdse.  To  Sundries, 
To  Cash  paid  Journeymen  to  date, 
"  J.  Day,  foreman's  wages  to  date, 

n        


45 


3    James  Day,  To  Sundries, 
j  To  Cash,  paid  him  on  account, 
i   "  Mdse.,  a  Black  Dress  Coat, 


3  20   3  '  Expense  acet.  to  Cash  pd.  for  Coal  $3,  post.  20, 


n 


Sundries  To  Cash, 
111    T.  P.  Cope  k,  Sons,  remitted  draft. 
200         1    Wm.  Hay,  do.       do. 

6  50  ,3    Exchange  acct.,  paid  Prem.  on  the  above  drafts. 

I  —     10.  - 


7800 


50 


CMdi. 


1700  60 


Mdse. 


24 


20 


1580150 
50 
6 

2  50 


16 
430 


12 
35 


I  Sundries  To  Mdse., 
3    J.  Day,  pd.  his  order  to  W.  Price. 
2    R.  Martin,      do.        to  James  Reed. 


Mdse.,  Dr.  to  Cash  pd.  Journeymen, 
— 16.     


Mdse.  To  Cash,  pd.  Davis's  Auction  Lill, 
fi 


95 


45 


3  :  J.  Day,  Dr.  to  R.  Martin. 
!  For  our  order  on  R.  Martin. 


//  — 


60 


200 


A.  BeU  To  Mdse.,  for  1  full  Circle  Cloak, 

20.      ^== 

Mdse.,  Dr.  to  Edward  Pryor, 
For  his  Invoice  of  Trimmings, 

n         

Cash  To  E.  Pryor,  rec'd  in  loan, 

1 w  


!  \ 


2  50   2    A.  Bell  To  Mdse.,  repaired  Coat  and  Vest, 

//  ■ 

16         3    E.  Pryor  To  Mdse.,  2  pr.  Blk  Cassim.  Pants  at  $8. 


3 


8 


3146  20 
5154  • 
4160' 

12460  20 


•  Amounts  forwarded. 
Cash,  .  .  . 
Merchandise   . 

Proof 


1.  After  the  books  are  open  we  discontinue  the  useless, 

though  universal,  practice  of  continually  repeating 
the  place  of  business  at  the  head  of  every  page. 

2.  Mdse.  is  Dr.  for  the  expense  of  manufacturing,  al- 

though it  is  more  proper  to  carry  rents,  clerks' 
wages,  and  the  expense  of  selling  it,  to  the  Ex- 
pense account. 
8.  To  save  writing  we  may,  hereafter,  set  the  footings  of 
the  Cash  and  Merchandise  columns,  at  once  into 
the  proof  column. 


3  20 


706 


50 


16 

630 


25 


60 


200 


7635 
3100  20 
1725  1 

12460  20 


126 


25 


47 


45 


2 
16 


50 


Dks. 


Mdse. 


4160 
80 
50 


Gash. 


5154 


534 


250 


300 


650 


February  28,  1867. 


Cbs. 


3146 '20 


200 


48 
36 


45 
0 


5 

43 


800 


40 


48, 


Bro't  forward, 

j  Mdse.  To  Cash,  pd.  Journeymen, 

\  —        If 

Mdse.  To  J.  Day,  wages  to  date  as  foreman, 

■  ==    Mar.  1.  - 


1 

7635 

1              I 
Cash. 

3100 

20 

1 

I 

36 

3 

i 

50 

1 

MdM. 
1725! 


3    1  E.  Pryor  To  Cash,  pd.  loan  of  20th  ult. 

^ ^         

I  Sundries  To  Mdse., 
1  !  P.  Duflf,  for  6  yds  Black  Cloth,        at  $8. 
1  I  W.  Gordon,  16  yds.  Fig'd  Satin,  1.50  24. 

1  doz.  Black  Cravats,  12» 

—     10.     — 


200 


Cash  To  R.  Evans,  rec'd  by  mail, 

— - " —        ft         

Sundries  To  Mdse., 

2  R.  Evans,  1  ps.,  36  yds.,  Satin, 

3  j  E.  Pryor,  pd.  his  order  to  A.  Wood. 

_ -^        ff         


at  $1.25 


Sundries  To  Mdse., 
A.  Bell,  1  fine  Hat. 

Samuel  Gaynor,  4  yds.  B.  Blk.  Cloth,  at  $10.    40. 
1     "     Cassimere,  3^ 

^..^     20.      "- 


250 


I  i  «  T.  P.  Cope  &  Sons  To  Cash, 
1  Pd.  their  draft  at  sight  for  Bal.  of  account. 


//         

Cash,  Dr.  To  Robert  Butler,  rec'd  per  mail, 

ff         


806 


I 


3     Edward  Pryor  To  Andrew  Bell, 
i  for  our  order  on  the  latter. 


3  I  *  S.  Gaynor  To  Mdse.,  paid  his  order 
to  H.  Wallace, 

— ' ■■  25.     = 


4417  20  I 

6354 

4780 

15551  20 


Mdse.  To  Sundries, 

To  T.  P.  Cope  &  Sons,  for  Invoice  of  Cloths, 
"   Cash,  paid  freight  on  same, 

■  Cash  To  Mdse., 
For  Cash  sales  to  date. 

Amounts  forwarded,       .... 

Cash, 

Merchandise 


Proof 


1.  We  wish  our  readers  to  observe,  that  though  want  of 

room  compels  us  generally  to  write  only  the  initials 
of  the  Christian  names  of  persons,  in  business  we 
direct  these  to  be  written  in  full;  confusion  and 
trouble  are  frequently  occasioned  by  the  contrary 
practice.  Legal  titles  should  also  always  be  chosen : 
"Commercial  Advertiser"  or  "Evening  Express" 
are  not  the  proper  titles  for  accounts  in  our  books. 

2.  Recollect  Note  1,  Carter's  acct.,  p.  105. 

3.  Recollect  Rule  IX.,  p.  40. 


2 


300 
40 


504 


30 


8779 
4166  20 
2606 

15551  20 


127 


84 


51 


4S 


48 


650 


Drs. 


March  30,  1867. 


Crs. 


Hdss.  1 

1 

OMh. 

4780 

1 

6354 

4417 

20 

60 

3 

m 

37 

25 

45 
90 

20 

2 
3 

4 

4632 
6391 
4830 

20 
25 

45 

1 
1 

15853 

Bro't  forward, 

;/  

Expenses  To  Cash,  paid  store  rent  to  date, 

//        

Merchandise  To  James  Day, 

for  foreman's  wages  to  date. 

=     31.     == 

James  Carter,  Dr.  to  Cash  on  account, 

ff         

Expense  account  To  James  Carter, 

for  3  months'  salary  to  dates, 

ff         — 

Profit  A,  Loss  To  Cash,  for  a  counterfeit  $20  note, 

ff         

Cash  To  Robert  Butler, 

Received  in  full  per  mail. 

Total  amount  to  date 

Cash        .         . 

Merchandise 

Proof      


Merchandise  on  hand  per  Inventory  at  date  is 
$3217.50.— See  Invoice  Book,  p.  137. 


m 

Cast 

1. 

Hdae 

8779 

4166  20 

2606 

60 

3 

50 

45 

- 

2 

90 

20 

2 

37 

25 

1 
1 

8956 
4291 
2606 

16853 

25 
20 

1.  To  find  the  balance  of  cash  in  hand,  after  a  period  of  the  Day  Book  is  posted,  you 
must  add,  with  your  pencil,  the  balance  of  the  posted  part  of  the  cash  account  on  the 
Ledger  to  the  footing  of  the  debit  column  of  that  account  on  this  book;  then  deduct  the 
amount  of  the  credit  column,  and  you  have  the  balance  in  hand,  as  in  note  1,  p.  23. 

2.  Care  must  be  taken  to  extend  the  cash  and  merchandise  entries  into  their  own 
columns.     Each  entry  should  be  carefully  examined  before  adding  up. 

3.  This  form  of  Day  Book  will  be  found  applicable  to  almost  any  kind  of  business,  the 
Cash  columns  being  always  required  as  they  are  here.  Those  which  we  use  for  Merchan- 
dise "may  be  used  for  any  title  that  will  represent  the  person's  principal  business;  the  Medi- 
cal and  Legal  professions  can  use  it  for  their  Practice;  Manufacturers  would  use  it  for  their 
Factory,  Hotels  would  use  it  for  their  Expenses,  &c. 

4.  Every  business  has  an  account  from  which  its  principal  income  is  derived.  This  and 
the  cash  'account  must  always  create  a  great  number  of  entries,  and  any  mode  of  posting 
these  entries  in  accumulated  amounts,  must  materially  diminish  the  amount  of  writing  in 
the  Ledger.  No  method  has  yet  been  tried  which  accomplishes  this  object  with  so  much 
simplicity  and  accuracy  as  those  explained  in  this  and  the  following  set.  I  am  aware  that 
some  do  it,  or  attempt  to  do  it,  by  the  page,  by  the  week,  and  by  the  month,  by  means  of 
what  is  called  a  "  collecting  sheet.'  But,  on  account  of  its  great  impediment  to  checking, 
and  still  greater  difficulty  in  detecting  errors,  this  mode  of  posting  can  never  be  recom 
mended. 

128 


PARTNERSHIP    BOOKS. 

THE  LEDGER. 


INTRODUCTORY  REMARKS. 

1.  The  following  Ledger  is  opened,  conducted,  and  closed  upon  the  same  principles  as 
those  already  explained.  I  have  made  one  or  two  slight  deviations  from  the  common  course, 
which  the  book-keeper  may  or  may  not  adopt,  as  he  pleases.  In  order  to  conflict  as  little  as 
possible  with  the  established  process  of  teaching,  I  retained  the  prepositions  To  and  By  in 
the  Double  Entry  Ledgers  in  the  first  part  of  this  work ;  but  as  I  consider  them  of  no  more 
use  than  the  old  practice  of  filling  up  the  cent  column  with  unmeaning  ciphers,  I  have 
dropped  them  in  both  Ledgers  in  this  part  of  the  work. 

2.  In  the  next  place,  I  have  in  some  instances  briefly  detailed  the  Day-Book  entries  on  the 
Ledger.  I  am  aware  that  some  ridicule  all  attempts  at  entering  details  of  any  kind  of  busi- 
ness upon  the  Ledger,  and  many  persons  are  impressed  with  the  idea,  that  it  is  contrary  to 
the  rules  of  accounts  to  do  so.  But  retailers  will  be  perfectly  safe  in  giving  what  I  suggest 
a  trial.  It  is  as  easy  to  write  1  ft)  tea,  a  hat,  a  coat,  or  a  pair  of  boots,  at  a  man's  account,  as 
merchandise.  The  book-keeper's  experience  will  soon  enable  him  to  judge  how  far  it  will 
be  for  his  convenience  to  carry  out  this  method  of  posting,  recollecting  that  it  is  only  recom- 
mended to  retailers. 

3.  While  teaching  the  principles  of  the  science,  dividing  the  Profit  &  Loss  account  into 
Expense,  Exchange,  Interest,  &c.,  renders  the  subject  more  complex  and  tends  to  retard 
rather  than  facilitate  the  student's  progress.  For  this  reason  none  of  these  accounts  were 
introduced  in  any  of  the  preceding  sets :  but  we  have  given  an  exemplification  of  each  in 
this  and  the  following  set,  with  the  necessary  directions  for  closing.  We  may  also  observe, 
that  these  accounts  ought  always  to  be  kept  in  every  business  that  creates  any  considerable 
number  of  entries  for  them.     Note  4,  p.  24. 

4.  I  have  opened  the  Ledger  with  a  cash  capital  of  84000,  placing  $2500  at  the  credit 
of  Dufl",  and  $1500  at  the  credit  of  Gordon.  The  business  closes  with  a  gain,  which  is  divided 
and  carried  to  the  credit  of  each  partner  in  proportion  to  his  capital. 

5.  It  may  be  proper  to  observe  here,  that  the  rules  of  accounts  have  nothing  to  do  with 
regulating  the  division  of  profits  or  losses ;  that  is  altogether  a  matter  of  private  agreement. 
In  our  next  Ledger  will  be  found  an  illustration  of  the  equal  division  of  profits ;  and  on 
page  181,  various  modes  of  adjusting  the  difference  of  capital  by  interest :  our  students  shall 
have  an  ample  variety  of  illustrations. 

6.  After  closing  this  Ledger  we  have  transferred  the  contents  to  a  new  set.  This  was 
done  for  the  purpose  of  giving  another  practical  elucidation  of  that  process,  and  also  to  get 
an  opportunity  of  exemplifying  the  application  of  our  method  of  proving  the  books  to  an 
entire  set.  We  think  it  proper  to  give  this  explanation  here,  because  many  persons  imagine 
that  every  new  partner  who  is  introduced  into  a  firm,  makes  it  necessary  to  have  a  new  set 
of  books.  This  is  not  necessary,  provided  the  old  books  have  been  regularly  kept.  It  is, 
however,  generally  necessary  to  take  an  inventory  of  the  property  on  hand  and  to  make  out 
a  Balance  sheet.  The  new  partner's  name  is  then  introduced,  with  a  credit  for  whatever  he 
brings  in,  and  a  debit  for  what  the  firm  may  assume  for  him.  The  old  partners'  accounts 
are  closed  and  their  respective  shares  in  the  business  at  that  period  brought  down. 

7.  A  suspended  list  ought  always  to  be  opened  upon  these  occasions  for  such  debts  as  the 
old  partners  have  any  doubt  of  collecting. — See  Suspended  List,  p.  134. — Of  course  they 
must  make  good  to  the  new  firm  all  old  debts  for  which  they  credit  themselves :  and  if  many 
of  these  debts  should  afterwards  prove  wholly  or  partially  irrecoverable,  the  adjustment  oV 
the  matter  has  always  to  take  place  after  the  lapse  of  considerable  time, — perhaps  several 
years  :  it  then  becomes  an  awkward  and  very  troublesome  operation.  In  all  such  cases  it  is 
better,  at  the  commencement,  for  the  old  partners  to  carry  no  debts  to  their  credit  but  such  as 
they  are  absolutely  certain  of  collecting.  Leave  all  the  others  behind  upon  the  suspended  list, 
and  make  new  dividends  of  them,  between  themselves,  as  collected. — See  Duff"  and  Gordon's 
Account,  page  169. 

I  129 


I 


il  ' . 


r  I 


#' 


ON  CLOSING  A  PARTNERSHIP  LEDGER. 

1.  The  principles  of  opening,  closing,  transferring,  and  re-opening  books  have  been 
already  so  carefully  explained  in  the  first  part  of  this  work,  that  it  is  to  be  hoped  nothing 
need  now  be  repeated  that  has  been  there  explained. 

2.  The  only  new  features  in  the  process  now  before  us  are  the  dividends  of  gain  or  loss, 
the  partners'  accounts,  and  the  suspended  list ;  the  management  of  all  the  other  accounts  is 
in  every  respect  the  same  as  in  individual  business. 

3.  The  manner  of  finding  the  net  gain  or  loss,  is  the  same  as  we  have  previously  explained  : 
the  division  of  it,  and  the  operation  of  closing  the  account,  can  be  best  explained  at  the 
account  itself — p.  134. 

4.  In  closing  the  personal  accounts,  omit  the  partners'  accounts,  and  leave  them  open 
until  the  last :  they,  like  the  stock  account  in  individual  business,  being  always  affected,  as 
you  perceive  by  referring  to  them,  by  the  closing  entries  of  Profit  &  Loss,  and  must,  there- 
fore, be  left  open  to  receive  their  entries  of  gain  or  loss  when  that  account  is  closed,  which 
cannot  be  done  until  it  receives  all  its  transfers  from  the  Other  accounts.  Therefore,  the 
partners'  accounts,  Profit  &  Loss  and  Balance,  must  be  remaining  open  after  all  others 
are  closed  :  these  are  then  closed — ^first.  Profit  &  Loss  into  the  partners'  accounts,  then  the 
partners'  into  Balance :  then,  if  all  be  correct.  Balance  will  be  exactly  closed  by  these  last 
transfers  from  the  partners'  accounts.  The  accountant  should  always  first  make  the  closing 
entries  of  these  last  accounts  in  pencil,  to  be  certain  that  the  Balance  will  close  by  the  last 
entries.  For  although  this  trial  may  have  come  out  all  correct,  errors  or  omissions  may  have 
got  into  the  work  that  he  has  done  since,  which  will  compel  him  to  scratch  and  disfigure 
these,  the  most  conspicuous  accounts  in  his  Ledger. 

5.  It  may  \>e  proper  to  remark,  that  though  both  our  partners'  accounts  here  close  To 
Balance,  when  a  partner  draws  out  more  than  his  share  of  the  gain  and  the  amount  he  has 
paid  in,  his  acct.  closes  -By  Balance.  When  all  the  partners' accounts  close  in  this  way,  then 
the  firm  is  insolvent.  In  short,  after  partners  have  received  their  transfer  from  Profit  & 
Loss,  their  accounts  then  close  in  every  respect  like  those  of  other  persons. — See  Notes, 
Balance  account,  p.  35.* 

6.  We  have  already  alluded  to  the  use  of  the  Suspended  List,  and  have  now  only  to  state, 
that  it  is  opened  for  the  purpose  of  exhibiting  a  list  of  all  such  accounts  as  we  think  we 
cannot  safely  make  a  dividend  upon  :  the  partners  must  themselves  mark  these  for  the  book- 
keeper. The  amount  of  such  accounts  must  be  known  in  order  to  enter  the  Profit  &  Loss 
account,  for  the  Ledger  will  not,  of  course,  balance  without  disposing  of  these  accounts 
either  in  Profit  &  Loss  or  Balance :  besides,  the  practical  merchant  or  mechanic  will  find 
this  companion  to  the  Balance  sheet  a  useful  monitor  every  time  it  is  made  out. 

7.  The  book-keeper  can  often  materially  shorten  the  balance  sheet  by  sending  round,  before 
making  it  out,  and  paying  off"  all  trifling  balances  against  him,  and,  at  the  same  time,  by  col- 
lecting all  balances  of  this  kind.  From  inattention  to  what  I  here  suggest,  I  have  seen 
balance  sheets  made  out  with  fifty  or  sixty  accounts  of  trifling  sums  upon  them,  nearly  all 
of  which  would  have  been  paid  if  called  for. 


Note. — ^We  think  it  unnecessary  to  annex  an  index  to  this  Ledger :  we  give  one  to  the  next — page  164. 

*  If  a  partner  is  taken  into  the  firm  without  capital,  his  account  will  open  without  a  credit,  and  will  remain  so  until  the 
Imginess  places  a  profit  at  his  credit. 


130 


fir. 


R 


DUFF. 


Cr. 


1867. 

Jan.  10  Cash, 

31  1  pr.  Fine  Boots, 
Mar.    1  6  yds.  Blk.  Cloth®  $8. 


Balance, 


59. 


f. 


1867. 

1     1 

1 

5 

Jan.  '  2' 

2 

6 

Mar.  31 

3 

48;     , 

1                     '           ' 

4 

2884 

47 

2943 

47 

Cash, 


2943.47    p 
59.        ^' 


1 

4 


2500 
443  47 


,- 188£47 


2943  47 


-1- 


1.  Credit  each  partner  for  what  he  pays  in,  and  for  his  share  of  th^net  gain,  and  debit  him  for  what  he  draws  out  and  for  his 

share  of  the  net  loss.    Close  To  or  By  Balance. — Notes  4  and  5,  p.  130. 
•2.  When  a  partner  leaves  home,  taking  money  with  him  to  lay  out  for  the  business,  he  should  leave  a  memorandum  of  th« 

amount  with  the  cashier,  who  can  count  this  paper  as  money  until  the  partner  sends  him  a  statement  of  the  outlay  • 

then  the  final  entry  is  made.    The  practice  of  encumbering  a  partner's  account  with  such  transactions  can  never  b« 

recommended. 


W.                                                GORDON. 

1867. 

Jan. 
Mar. 

I 

20 

31 

2 

31 

1 
Cash, 

1  pr.  Ladies'  Boots, 
16yds.  F.  Satin®  1.50 
1  doz.  Cravats,       48.50 
Balance^                      f. 

1 

2 
3 

4 

1 

10 
250 
24 
12 

1717  58 

r    1867. 

Jan. 
Mar. 

2!  Cash, 

31  Profit  &  Loss,  ^'ffiJS   f. 

1     1500 
4       266  08 

i 
I 
1 

1766  08 

1766  08^ 

1 

1 

i 

|-    III 

) 

T.  P.                (PI 

^ladelphia 

\'    1867. 

1  Jan. 

COPE  &  SONS. 

1867.  ' 

Jan.     5 
Feb.     5 
Mar.  20 

Cash, 
// 

1 
2 
3 

4 

1200 

500 

800 

2 

Mdse.  "^  Invoice, 

1     2500 

i  '^'      1 

2500 
3       504* 

2500 

504 

31 

Balance                      f. 

Mar. 

25 

Mdse.  "^  Invoice, 

WILLIAM 

HAY. 

iscr. 
Jan. 

Feb. 
Mar. 

5 
5 

31 

Cash, 

//                                         600 

Balance,              *       f. 

< .                 1 

1  400    : 

2  200 

4!      200 

'    1867. 

Jan.    2 

Mdse.,                   »5: 

1      800 

i 

800 

800 

■^                                      ■— mz 

CASH                                           ACCOUNT. 

1867. 

Mar. 

31 

Sundries  to  date,   SiS 

2100.05 

1 
4 

! 

6391 

25 

25 

1867. 

Mar. 

1 

31 

1 

Sundries  to  date,           4     4291  20 
Balance,                     .           J 100  05 

6391 

1 

639125 

1 

MERCHANDISE 

ACCOUNT. 

1867.  1 

Mar. 

31 

Sundries  to  date,           4     4830      1 
Profit  &  Loss,           f.  4       993  50 1 

Ii —    -  ■  --;1 

1867.  '                                                              ; 

Mar.  31   Sundries  to  date, 

//       lrilMn"<'                    5S23-56 

4     2606 

1 

5823  50 

ML50 

5823  50 

■      -^^ 

Il 

131 


ii! 


ii 


I        I ' 


f;    i' 


'' 


Dr. 


ROBERT 


(i«70  Bowery; 


MARTII^. 


ir. 


1887.  I       I 

Jan.     5l  1  pr.  Fine  Boots, 
Repairing  2  pr.  do. 
1  pr.  Ladies'  Boots, 
20  Repairing  Boots, 

Feb.  10  Pd.  order  to  J.  Reed  t 


May  23>  Bal.  bro't  down, 


Note  7,  p.  129,  and  6,  p.  130. 
I.  The  above  account  remained  closed  until  Martin  paid  the 
amouDt  to  the  new  firm.    It  was  then  re-opened  to  re- 
cord the  payment :  this  must  always  be  done  in  such 

case:s. 


1807. 

Feb. 

Mar- 


May 


15 

31 


Our  order  to  J.  Day, 

Suapeuded  J^ist,  f. 


23,  Pd.  Duff,  Gordon  &  Co. 


2 

4 


2.  If  the  business  of  the  new  firm  had  re-opened  in  these 
books,  it  would  then  have  been  necessary  to  re-open  the 
suspended  accounts  with  a  Day  Book  Entry,  making 
them  Dr.  To  Duff  &  Gordon :  then  credit  them  for  the 
payment. 


JAMES 


(Clerk) 


CARTER. 


1867. 


Jan.  '  5;  Shoes  1.75,  Boots  foot- 
ed 2.75, 
20  2  pr.  Pumps,  @  $2, 
Mar.  31  Cash,  53.W 

vlalance,  f. 


1 

;   1887. 

;Mar. 

31 

1 

4 

50 

1 

1 

4 

4 

4 

45 

36 

50 

1 

90 

1 

3  mos.  sal'y  to  date,  Sim 


90 


90 


ROBERT 


(Buffalo) 


EVANS. 


1867.  I       I 

Jan.     5  Mdse.*^  Invoice, 

Mar.  10  36yds.cordSatinl.25' 3 

316.2& 
250. 


May  31  Bal.  bro't  down, 


1887. 

27125'  Mar. 
45 


10 

31 


Cash  by  mail, 

fcu;=pUU(ieu  List, 


Pd.  Duff,  Gordon  A  Co. 


3 

4 


See  Martin's  account  above,  and  Note  2,  Suspended  List,  p.  134. 


ROBERT 


(Albany) 


BUTLER. 


1867. 


1       I 


Jan.  10  Mdse.  19  Invoice 


1       337  25 


1867. 


337  25 


Mar.  ,20  Cash  f  mail, 
31      f 


3 

4 


3001 
37125 


337 


25 


ANDREW 


BELL. 


IMT. 


Feb.  15 1 1  full  circle  cloak, 

20  Coat  and  vest  repaired, 
Mar.  10  1  Beaver  Hat, 


52.S0     q 

40.  *> 

12.50 


1807. 


Mar.  20  Our  order  to  E.  Pryor, '  3 
31  i  Profit  &  Loss,  f.j4 


Considering  thia  a  bad  debt,  we  clooe  it  into  Profit  &  Lobs. 

132 


Dr. 


JAMES 


(Foreman) 


DAY. 


Cr. 


i8«r. 

Feb. 

1 

10 
15 

Mar. 

31 

Cash, 

Black  Dress  Coat, 
Pd.  order  to  W.  Price^ 
Our  order  on  R.  Mar- 
tin, 83. 
I^alance.  '                 fol. 


2 
2 

20 
25 
12 

25 

1 

1867. 

Feb. 
Mar. 

1 

28. 
30' 

, 

i 

4j 

G8 

— 

150 

1/ 


150. 
82. 


2 

50 1 

'3 

50 

4; 

50 

! 

i 
150 

EXPENSE 


ACCOUNT. 


1867. 

Jan.     5  Cash, 

Feb.     5       n 

Mar.  30       //    Store  Rent, 

31  J.  Carter,  salary,    i54.to 


1 
2 

4 


150 
3  20 

60 

90 

154  70 


186T. 

Mar.  31  Profit  &  Loss, 


fol.  4       154  70 


154  70 


EXCHANGE 


ACCOUNT. 


1867.   ' 

Jan.    5 
Feb.    5 


Cash, 

1 

4 

10.50       2 

6 

50 

10 

50; 

1867    ' 

Mar-  31  Profit  &  Loss, 


fol. 


10  50 


10  50 


1.  This  and  the  preceding  account  are  branches  of  Profit  &  Loss,  and  are  always  closed  into  it. — Note  4,  p.  24,  and  Note  3,  p. 
129.  The  student  can  never  be  at  any  loss  in  conducting  them,  they  being  of  the  same  nature  as  Profit  &  Loss,  and  are 
therefore  always  debited  when  you  lose,  and  credited  when  you  gain  by  them. 


EDWARD 


PRYOR. 


1867.  j       I  1       !| 

Feb.  '20 '  2  pr.  Blk.  Pants,  @  $8.  2  16 

Mar..  1 1  Cash  Loan  20th  ult.,       3x  200 

|lO  i  Mdse.pd.  order  to  Wood  |     i  6 1 

20  Ourorder  on  A.Bell 


262. 
260. 


1867.  I       I  I 

Feb.  20  Mdse.  ^  Invoice,           2  60 

I       Cash  Loan,  m   |    X  200 

Mar.  31   Hahuice,  fol.,  t  Zl 


262 


This  method  of  entering  loans  dispenses  with  the  Borrow  &  Loan  accoant. 


SAMUEL 


GAYNOR. 


1867.  I  I       11 

Mar.  10  4  yds.  best  Blk.  Cloth,  '  3 
1    //    Cassimere, 
20  Paid  order  to  H.  Wal 
lace, 


n. 


40 
8 

48 


91 


1867.   I       I 


fol  -. 


n 


--'■■'■■"" 

91 

'■ '                     » 

133 


I  f' 


Jlr. 


PROFIT  &  LOSS. 


Cr. 


PROOF  SHEET,  March  31,  1867. 


Drs. 


Crs. 


IMT. 


Mar.  '31  Cash  counterfeit  money 


Andrew  Bell, 
Expense  acct., 
Exchange  acct., 
Suspended  acct., 
P.  Duff's  net  gain, 
W.  Gordon  u 


fol. 


283.% 


1867. 

Mar. 


31 


Mdse., 


fol.  1       993 


993.50 
283.95 

Gain,       709.55 


993 


50 


50 


m 


•i 


|,:. 


V     i 


:b 


Bead  Note  4,  p.  130. 

1.  The  marginal  pencil  figures  on  each  side  show  how  the  net  gain  is  found :  Then, 

Duff's  Capital  was        2500. 
Gordon's  1500. 

4000  :  709.55  : :  2500  :  443.47,  Duff's  share  of  the  gain. 
Then,  4000  :  709.55  : :  1500  :  266.08,  Gordon's  do.         do. 

2.  When  each  partner's  share  of  the  gain,  thus  found,  is  placed  to  the  debit  of  this  account,  it  must  exactly  close  it. 


BALANCE 


ACCOUNT. 


1887. 

Mar. 

31 

Cash,                      fol. 

Mdse., 

E.  Pryor, 

S.  Gaynor,            _^^ 
^^..^-^  »ao.55 

1 
1 
1 
3 

2100 

3217 

2 

91 

! 
05 
50 

55 

!  1867. 

Mar. 

31 

T.  P.  Cope  &  Sons,  fol. 
Wm.  Hay, 
James  Carter, 
James  Day,           eos.so 
P.  Duff,  for  net  capital, 
W.  Gordon,      // 

1 

2 

3 
1 
1 

504 

200 

36 

68 

i  2884 

1717 

50 

47 
58 

5410 

5410 155 

} 

1 

—r 

P.  Duff 

W.  Gordon   •. 

T.  P.  Cope  &  Sons 

W.  Hay 

Cash 

Mdse.    . 

Robert  Martin    . 

Jas.  Carter    . 

R.  Evans  . 

Robt.  Butler 
I  Andrew  Bell 
i  James  Day    . 
\  Expense  Account 
!  Exchange  Account 
I  Edward  Pryor    . 

Samuel  Gaynor 

Profit  &  Loss 


fol. 


2 


See  Balance  accounts,  pp.  17  and  35. 

This  account  is  made  up  from  the  Ledger,  in  all  respects  as  in  individual  business;  and  the  difference  between  the  amount 

of  the  effects,  and  the  debits  owing  by  the  firm,  is  the  net  joint  CHoital.    The  proportion  of  that  capital  which  belongs 

to  each  partner,  can  only  be  known  from  his  account.    When  each  partner's  balance  is  transferred,  it  must,  as  you  see 

above,  close  this  account :  neither  more  nor  less. 
If  any  of  the  partners  overdraw  their  capital,  then,  of  course,  the  balance  they  owe  the  firm,  like  a  balance  due  from  any 

other  individual,  is  part  of  the  effects  and  comes  to  the  Dr.  side  of  this  account. 


1.  The  above  Proof  or  Trial  sheet  must  embrace  all  amounts  that  have  been  posted  since 
the  last  balance — closed  accounts  as  well  as  open  ones.  See  Cope  &  Sons'  account  above. 
By  this  means  we  have  not  only  proof  by  equal  debits  and  credits,  but  we  have  the  sum  total 
of  the  postings  to  the  Ledger  agreeing  in  amount  with  the  sum  total  of  the  Day-Book  trans- 
actions. Compare  the  above  with  the  Day-Book  footings,  p.  128.  This  is  the  strongest  and 
most  conclusive  proof  that  our  Day-Book  is  completely  posted.  If  one  dollar  or  one  cent  be 
omitted,  it  is  evident  that  this  Trial  must  fall  just  that  amount  short  of  the  Day-Book  foot- 
ing. On  the  contrary,  if  any  entry  by  any  means  gets  twice  posted,  the  Trial  will  certainly 
show  it  by  footing  up  just  the  amount  of  the  error  more  than  the  Day-Book. 

2.  In  our  next  set  our  students  will  find  an  illustration  of  the  monthly  trial,  also  a  full 
explanation  of  the  mode  of  detecting  and  correcting  errors. 

3.  If  the  business  had  continued  in  this  Ledger,  you  must  recollect,  that  in  re-openinsr. 
the  amounts  composing  the  old  Balance  account  do  not  pass  through  the  Day-Book,  ibr  this 
reason,  when  you  take  your  next  trial,  it  will  foot  just  the  amount  of  this  Balance  account 
more  than  the  Day-Book.  Therefore  at  each  succeeding  trial  after  the  first,  until  the  re- 
opening entries  are  passed  again  through  the  Day-Book,  deduct  the  amount  of  the  previous 
Balance  from  the  footing- of  the  trial  sheet,  and  the  remainder  must  agree  with  the  footing 
of  the  Day-Book  as  above. 


SUSPENDED 


LIST. 


186T. 


1       ii 


Mar.  31  Robert  Martin,       fol.  2 
Robert  Evans,  i 


20 
66  25 

86  25 


1867.  '       i 

Mar.  31  Profit  &  Loss, 


fol. 


See  Note  7,  p.  129,  and  Note  6,  p.  128. 

This  account,  as  you  perceive  above,  is  closed  into  Profit  &  Loss.  It  will  be  seen  by  these  accounts — p.  132 — that  when  a 
payment  is  received  upon  it,  the  account  must  be  re-opened  by  bringing  the  suspended  balance  down. 

I  wish  the  learner  to  observe  that  when  the  business  is  transferred  to  new  books,  as  in  this  case,  there  is  no  occasion  for 
closing  the  suspended  accounts.  Find  the  balances  as  directed — Note  3,  p.  113 — and  transfer  them  to  the  list  and  leave 
the  accounts  standing  open  until  paid.  But  I  have  closed  them,  because,  by  so  doing,  it  is  easier  to  convey  the  idea  of 
what  was  done  with  the  balances,  and  more  particularly  when  and  how  they  were  settled  after  the  Ledger  was  closed, 
and  all  other  accounts  transferred. 

After  what  has  been  stated  in  Note  3,  p.  113,  it  will  be  seen  that  it  is  never  necessary  to  close  an  account  for  the  mere  pur- 
pose of  finding  its  balance  to  make  up  any  sheet  or  list. 


134 


135 


' 


■f^l 


SET  II.— PART  II. 


Opening  with  a  transfer  of  the  contents  of  the  last  Ledger. — Exhibiting 

ALSO   the    formation    OF   A   NeW   FiRM   BY   THE   ADMISSION    OF  A  NEW   PARTNER. — 

Illustrating  thl   use  of  all  the  Auxiliaries  in    the    new  process    for 
detecting  errors  and 

PROVING   THE   LEDGER. 

1.  We  have  shown  in  the  last  set  our  method  of  proving  the  Books,  applied  to  the  Day- 
Book  and  Ledger  only.  That  set,  as  already  stated,  is  only  intended  for  a  retail  business. 
As  the  business  extends,  the  Auxiliaries  and  the  Journal  become  necessary.  I  may  however 
remark,  that  the  Journal  would  seldom  be  required  in  any  ordinary  business,  if  all  persons 
about  the  establishment  were  instructed  in  keeping  a  Day-Book  upon  this  principle.  ^  Where 
this  is  not  done,  a  common  Day-Book  must  be  kept,  from  whence  the  book-keeper  journal- 
izes the  entries. 

2.  Our  purpose  is  now  to  show,  that  our  method  of  detecting  errors  and  proving  the  books. 
is  applicable  with  the  use  of  as  few  or  as  many  of  the  Auxiliaries  as  the  book-keeper  may 
consider  it  necessary  to  keep. 

3.  By  a  slight  alteration  in  the  form  of  the  Invoice  Book,  and  adding  up  and  forwarding 
the  amounts  from  page  to  page,  it  will  be  seen  that  this  book,  the  merchandise  debit  column 
in  the  Journal,  and  the  debit  side  of  the  merchandise  account  in  the  Ledger,  will  correct 
each  other;  and  by  attending  to  the  footings  of  this  book  and  the  Journal,  an  error  cannot 
pass  unobserved  for  a  single  page.  It  is  to  be  observed,  however,  that  all  entries  affecting 
the  debit  side  of  the  merchandise  account,  must  originate  upon  this  book. 

•  4.  The  next  question  that  presents  itself  is,  how  are  invoices  of  consignments  to  be  dis- 
posed of?  We  exemplify  two  entries  of  this  kind:  one  on  April  30,  p.  137,  and  one  on 
June  4,  p.  138.  By  these  entries  it  will  be  seen  that  all  such  invoices,  and  invoices  on  ac- 
count of  ourselves  and  others  in  company,  can  be  entered  upon  this  book,  without  disturbing 
the  entries  of  our  own  invoices,  the  amounts  of  which  are  extended  into  the  right-hand 
column  to  be  footed  and  forwarded  as  before  directed. 

5.  By  a  similar  arrangement  it  will  be  seen  that  we  have  made  our  Sales  Book,  the  Mer- 
chandise credit  column  in  the  Journal,  and  the  credit  side  of  the  merchandise  account  in 
the  Ledger,  agree  with  each  other. 

By  the  cpmmon  mode  of  keeping  the  Cash  Book,  its  balance  and  that  of  the  cash  account 
in  the  Ledger  must  agree,  otherwise  there  must  be  error  in  one  or  the  other — perhaps  in 
both.  This,  however,  furnishes  no  clue  to  where  the  error  exists.  From  our  arrangement 
of  this  Book  in  connection  with  the  cash  columns  in  the  Journal,  it  will  be  seen  that  you 
can  always  in  a  few  minutes  point  out  the  very  page  and  generally  the  side  of  the  Book  upon 
which  the  error  exists. 

6.  The  Bill  Books  both  control  their  representatives  in  the  Ledger  upon  the  principles 
explained  in  Note  4,  p.  48.  The  Commission  Sales  Book  governs  the  Consignment  Sales 
acct.  in  the  Ledger  in  a  similar  manner.  And  the  same  harmony  is  maintained  between  the 
Check  Book  and  the  Bank  Account. 

7.  The  following  Invoice  Book  opens  with  an  inventory  of  the  Merchandise  brought  into 
the  new  firm  by  the  old  partners,  as  will  be  seen  by  the  Journal ;  this  Merchandise  is  carried 
to  their  credit.     The  Day-Book  and  Cash-Book  show  their  other  effects. 


136 


INVENTOBY  of  Merchandise  in  Store  belonging  to  DUrr  &  GORDON,  April  1st.  1867.  1 


D.B.I. 


^ 


6  pieces,  112?,  115?,  116, 112, 118, 117  =  691  yds.  Ingrain 
Carpeting         .         .         .         •         @  ^1. 

4      //    Blk.Broadcloth,20?,21!,20!,19?=82yds.    10. 

2      ^     Blk.  Oros  de  Naples,  60,  60  =  120  yds.  1. 

12       "     Blk.  Bombazine 
20      w     Colored  Florence 
20       //     Blk.  Crape  de  Paris     . 

4      //     Black  Satin  Vestings 

2      //     Green  Broad  Cloth     . 
100       If     Prints 
20       tf     Furniture 

1       //  do. 


1510  yds. 

120  yds. 
41  vds. 


15. 
30  cts. 

5. 

2. 

6. 

3. 

3.25 


10. 


Boston,  April  6th,  1867. 

D.  B.  1    Messrs.  Duff,  Gordon  &  Co. 

Bo't  of  Wm.  Hay. 
D.  G.     500  ps.  Merrimac  Prints        .         .         .         .         @  $3. 

&Co.  ;200   //   Furniture 4. 

80   //  Rolled  Jaconets 1-25 

QO   tf       If  ff 1-50 

Packing  cases     ...... 

Paid  Cash,  Freight,  and  Cartage 
II 


D.B.I. 


691 
820 
120 
180 
453 
100 
240 
246 
300 
65 
2 


Mdse. 
Dr. 


50    3217  150 


New  York,  April  10th,  1867. 
Messrs.  Duff,  Gorpon  &  Co. 

Bo't  of  A.  Stuart  &  Co. 
1  ps.  Super  Wool  Black  Cloth  .         .         22?  @  $S. 

1   //  Double  Mill'd  Cassimere        ...    24         1.50 

—  -  20.       =============== 


D.B.I. 


No.  4. 
//    6. 


Messrs.  Duff,  Gordon  &  Co. 

Bo't  of  A.  Stuart  &  Co. 
1  ps.,  60  yds.,  Blk.  Gros  de  Naples        .         .         @  75  cts. 
1    //  60     If      II      Bombazine   ....         50 


30. 


Invoice  of  40  pieces  Brussels  Carpeting,  consigned  to  Duff, 
Gordon  &  Co.,  for  sale  by  order  and  for  account  of  A. 
Stuart  &  Co. 

10  ps.,  360  yds.       .        * @  $1. 

10   //   360   // 1.25 

«    8.  1 10   If   360   //   .         .         .  Ingrain  .         .     1.50 

u  10.    10  /'   360   //       ,         .         .  do.         .         .        2. 

New  York,  April  30th,  1867. 

May  1.    ===== 


1500 

800 

100 

90 
4140     2494  i  4  > 

llle./ 


180 
36 


216 


45 

30 


75 


D  B.  2.  Messrs.  Duff,  Gordon  &  Co. 

Bo't  of  Edward  Pryor. 

4  yds.  Black  Silk  Velvet @  $4. 

6    '/     Fine  Black  Broadcloth         .         .         .         @  $8. 

Forwarded 


360 
450 
540 
720 


2070 


16 

48 


64 

6078  50 


137 


{ 


a 


1 


il 


;  { 


May  1, 1867. 


j  Bro't  forward 

Messrs.  Duff,  Gordon  &  Co. 
D-  B.2.  Bo't  of  Samuel  Gaynor. 

4  ps.,  240  yds.,  Black  Gros  de  Naples     .         .         @$1. 

1  ps.  Green  Crape 

New  York,  May  1st,  1867. 

•      23.  '  


D.B.3. 


Philadelphia,  May  10th,  1867. 
Messrs.  Duff,  Gordon  &  Co. 

Bo't  of  T.  P.  Cope  &  Sons. 
500  bbls.  Superfine  Flour       .         .         .         .         @  $4. 
50    //     Herring 6. 

June  4. 


F.  H. 


Invoice  of  Broadcloths,  consigned  to  Duff,  Gordon  &  Co. 
for  sale  by  order  and  for  account  of  Francis  Hardman 

6  ps.  Super  Blue,  19?,  20?.  21, 19,  18,  22  =  120  yds.,  @  $8. 

7  //  Wool  Black,  17, 23, 18, 22, 19, 21, 20  =  140    //    @    9. 
Packing  case 

Boston,  June  1st,  1867. 


D.  B.  4.  Taken  to  our  account  @  3  months,  3  pieces  A.  Stuart  &  Co.'s 
Carpeting,  viz.  2  pieces  72  yds.  @  $1.50,  and  1  piece  36 
yds.  @  §2 


Messrs.  Duff,  Gordon  &  Co. 
D  B.4.  Bo't  of  S.  Henry  &  Co. 

il2  Cashmere  Shawls @  $50. 

12        //  »  30. 

12        »  I,  10. 

12        n  Lamb's  Wool  Plaid  do.       .         .  3. 

Rec'd  Payment, 
New  York,  June  4th.  1867.  S.  Henry  &  Co. 

======       10.  


D.B.5. 


D.B.5. 


Duff,  Gordon  &  Co. 

Bo't  of  Wm.  Hay. 
24  pr.  Super  Bath  Blankets 


@$7. 


Duff,  Gordon  &  Co. 

Bo't  of  Thomas  Freeman. 
12  pr.  Super  10-4  Rose  Blankets 

=====      20.        == 


@$6. 


Duff,  Gordon  &  Co. 
D.  B.  5.  Bo't  of  James  Haven. 

14  pieces  Satin  Ribbon 

i It  


@$2. 


I   Duff,  Gordon  &  Co. 
D.  B.  5.  Bo't  of  A.  Stuart  &  Co. 

500  ps.  Merrimac  Prints  .         .         ,         .         @  $2. 

Rec'd  payment  By  note  @  3  months, 
New  York,  June  20th,  1867.  A.  Stuart  &  Co. 

June  30,  Total  purchases  to  date  . 


240 
25 


6078  50 


2000 
300 


960 

1260 

2 


265 


2300 


2222 


600 
360 
120 
.36 


180 


1116 


168 


72 


28 


1000 


J 1207 


50 


Inventory  of  Mdse.  on  hand  June  30,  1867. 


4  ps.,  320  yds.,  Ingrain  Carpeting 
700   //     Merrimac  Prints 
400  barrels  S.  F.  Flour       . 
300  ps.  Furniture  Prints 
400   //  //  //         .         . 

10  Cashmere  Shawls 
8  //  //  .         . 

50  barrels  Herring 
10  ps.  200  yds.,  Broadcloth 


4 
6 
4 
6 


230 
360 

82 


Blk.  Gros  de  Naples 
Fancy         // 
Broadcloth  . 


@31. 

4. 
.    4. 

4. 

.    2. 

50. 

.  30. 

6. 
.    3. 

1. 
.     1. 

le. 


Crape  de  Paris .     5. 


Enter'd  Ledger  2. 


CONCLUDING  REMARKS. 

1.  It  is  not  necessary  to  pass  the  Inventory  of  goods  on  hand  through  the  books,  unless  at 
the  transfer  to  new  books,  although  there  are  no  objections  to  doing  so  in  the  common  mode 
of  keeping  books ;  but  upon  this  plan,  for  the  reasons  named  in  note  3,  p.  135,  it  would  cause 
some  trouble  with  the  next  trial  sheet. 

2.  In  a  business  where  the  invoices  are  so  long,  that  copying  them  entire  becomes  incon- 
venient, an  abstract  of  them  will  be  found  sufl&cient  for  this  book ;  but  we  must  again  remind 
our  student  that  he  must  see  this  book  made  complete.  Every  entry  affecting  the  debit  side 
of  his  merchandise  account  must  originate  here ;  but  when  this  is  done,  this  book  becomes 
a  direct  and  perfect  check  upon  the  Dr.  side  of  the  merchandise  account  in  the  Ledger. 
Nothing  so  completely  establishes  :  lie  correctness  of  this  part  of  the  book-keeper's  work  as 
the  agreement  of  this  book  with  its  representative  in  the  Ledger ;  and  this  is  done  on  any 
day  or  at  any  hour  you  choose  to  compare  its  footing  with  those  of  the  Journal :  you  are  not 
obliged  to  wait  until  the  time  of  making  out  the  trial  sheet. — Compare  the  footing  of  the  last 
page  with  that  of  the  debit  merchandise  column  on  the  Journal,  p.  161. 

3.  On  the  other  hand,  as  the  Invoice  Book  is  usually  kept,  it  affords  no  protection  what- 
ever against  error  in  the  Ledger.  It  is,  indeed,  of  no  practical  use,  except  as  a  memorandum 
of  the  prices  of  the  goods. 

4.  When  this  book  is  Tiept  in  this  form,  the  work  of  posting  can  be  shortened  by  another 
process.  Post  all  the  personal  accounts  direct  from  here  to  the  Ledger,  post  marking  them 
as  usual ;  and  at  last  post  the  merchandise  debit  from  the  end  of  the  month  or  the  end  of 
the  quarter,  as  may  be  decided  upon,  inserting  the  post  mark  on  the  same  line  with  the  sum. 
We  shall  show  hereafter — p.  142 — that  the  Sales  Book  can  be  posted  in  the  same  way,  and 
thus  do  away  with  the  merchandise  columns  in  the  Journal. 

5.  This  is  perhaps  the  shortest  and  simplest  of  all  methods  of  posting;  but  there  is  not 
the  same  security  against  errors,  nor  the  same  facility  in  detecting  them,  that  we  have  in  the 
other  arrangement :  besides,  there  are  some  kinds  of  business  to  which  it  will  not  be  appli- 
cable, whereas  the  arrangement  we  have  given  is  applicable  to  any  kind  of  business  whatever 


139 


138 


5' 
1 


I 


^ 


THE  SALES  BOOK. 

The  object  for  keeping  this  book  is  to  avoid  entering  long  invoices  of  sales  upon  the  Day 
Book.  It  is  generally  ruled  with  one  set  of  money  columns ;  but  for  our  purpose  two  sets 
are  required.  By  means  of  these  two  sets  of  columns,  it  will  be  seen  that  all  entries,  usually 
made  on  a  Sales  Book,  can  be  made  upon  this,  in  the  common  form,  and  with  very  little  trouble, 
All  amounts  affecting  the  Merchandise  accountareseparated,  footed,  and  forwarded  like  the 
credit  Merchandise  column  on  the  Journal ;  while  all  the  particulars  of  the  invoice  of  the 
sale  are  stated  and  exhibited  in  the  inner  column,  as  usual.  It  is  so  simple  that  any  further 
explanation  seems  unnecessary.  The  first  entry  on  April  30,  and  the  last  one  on  May  23, 
exemplify  the  management  of  entries  when  only  a  part  of  the  amount  is  to  go  to  the  credit 
of  merchandise. 

1*  NEW  YORK,  Saturday,  April  10,  1867. 


D.B. 


Sold  Robert  Butler  (Buffalo),  @  3  mos., 
50  pieces  Merrimac  Prints    . 
10       w     Rolled  Jaconets 

1       //     22?  Fine  Wool  Black  Broadcloth 
30       '/      Furniture  Prints 
Packing  case 


U. 

10. 
5. 


D.B.I. 


Edward  Pryorto  Mdse.  for  2  yds.  fine  Brown  Cloth  @  $8. 

If  


D.B.I. 

D.B.  2. 
D.B.  2. 


Sold  Richard  Howe  for  Cash 
70  pieces  Prints 
5       //     Furniture 


200 
20 
225 
150  I 
l!50 


5. 


Packing  box 


Tues.  20. 


*  Paid  E.  Pryor's  order  to  J.  Burk  in  Mdse. 


// 


Sold  Samuel  Gay  nor  on  his  order  favor  of  C.  Rhodes, 
1  piece  20  yds.  Super  Black  Cloth         .         .     @  11. 
1     //      118  yds.  Ingrain  Carpet         .         .  1 


280 
25 


50 


220 
177 


D.B.  2. 


Sold  James  Camp  for  Cash, 

2  pieces  19.',  20.'=40  yds.  Super  Blue  Broadcloth  @  11. 

1     //      60  yds.  Black  Gros  de  Nap.         .         .  1. 

10  pair  Bath  Blankets         .         .         .         .         .12. 

60  pieces  English  Prints         ....  5. 


5  per  cent,  for  Cash 

Friday  30 


75 


440 
60 

120 
300 

920 
46 


D.B.  2. 


@  4.50,  8108. 
1  30. 


Sold  Joel  Post  for  Cash, 
24  yds.  Purple  Silk  Velvet     . 
30     n    Crimson  and  Gold  Fringe 
4  ps.  144  yds.  A.  Stewart  &  Co.'s  Carpets  2.50 

Merchandise  forward  .... 


138 
360 


498 


1.  There  is  no  necessity  to  specify  the  articles  you  have  sold  in  payment  for  this 

order.    Your  possession  of  it  is  evidence  of  your  having  paid  it. 

2.  When  you  furnish  merchandise  upon  an  open  order — that  is,  an  order  permitting 

the  bearer  to  draw  any  amount  he  desires— it  is  necessary  to  specify  what  you 
sell  upon  it,  and  to  furniah  the  drawer  of  the  order  with  a  bill. 


140 


596 


16 


50 


305    75 
45 


397 


874 


138 


2372    25 


Saturday,  May  1,  1867. 


Bro't  forward 


D.B.  2. 


D.  B.  2. 


Sold  P.  Duff  on  account, 

4  yds.  best  Black  Cloth  . 

1  yd.  Black  Silk  Velvet      . 
If 

Sold  C.  Spencer  on  his  note  @  20  days, 
,        40  ps.  Merrimac  Prints  . 
10   //    Furniture 
1   //    20?  Black  Cloth  . 
Packing  case 


.    @  S8. 


.    @  $3. 

//     4. 

w     6. 


D.  B.  2. 


D.  B.  2. 


Sold  W.  Gordon  on  account, 
16  yds.  Fig'd  Gros  de  Naples 
1  Silk  Cravat     . 

It 

Sold  James  Carter  on  account, 
1  pr.  Black  Silk  Gloves 

12  yds.  Linen    . 

If 


@  31.25 


@  75c. 


D.  B.  2. 


Sold  Robert  Banks  on  account, 

1  yd.  Fancy  Velvet,  31.50.     2?  Fancy  Cassimere,  @  82. 

—  If  — — ^ 


D.  B.  3.    Received  Cash  for  sales  of  Mdse.  this  day 

=   Monday,  23.    ==^ 


n.  B.  3. 


Invoice  of  Mdse.  shipped  by  the  Brig  "Tribune,"  Truck, 
Master,  by  order  and  for  account  and  risk  of  Messrs. 
T.  P.  Cope  &  Sons,  Philadelphia. 

40  bbls.  No.  1  Mackerel       .         .         .         .        @  $6. 
300  boxes  Smoked  Herring        .         .         .         .  1. 


CHARGES. 


Commission  5  per  cent,  on  $540 
Cash  paid  for  cooperage,  cartage,  &c.  . 

E.  E.  New  York,  May  23,  1867. 
=    Tuesday,  31.  = 


S27. '' 
12. 


D.  B.  4. 


Sold  William  Evans,  payable  in  10  days, 
4  ps.  Furniture  Prints 
2   1/  If  //         .         .         . 


@83. 
//     4. 


// 


D.  B.  4. 

D.  B.  4. 

D.  B.  3. 
D.  B  4. 


Sold  J.  Reed,  payable  next  week, 

1  ps.  Super  Black  Cloth 

If 

Sold  Joel  Post,  payable  in  10  days, 

2  yds.  Super  Blue  Broadcloth 


22?,  @  38. 


.    @39. 


Received  Cash  for  sales  23d,  $180.     31st,  386  . 

IT  


Sold  R.  Butler  wrappers  for  a  bale  A.  Stuart  &  Co.'s  Carpet 


Merchandise  forwarded 


141 


240 
300 


2 


8" 


284   50 


21    .50 


10    25 

6    50 
160  ' 


540 


540 

i 

1 
39 

579 

1' 

1 

20 

182 

18 

266 
I 
1    50 

3919   50 


^ 


8 


Saturday,  June  4,  1867. 


1  Bro't  forward 

D.  B.  4.    Sold  James  Reed  on  account, 

i  1  ps.,  36  yds.,  Brussels  Carpet    . 

1  Silk  Shawl         .... 


@  82.25 


81 
15 


D.  B.  4.    Sold  Wm.  Hay  on  account  1  Cashmere  Shawl    . 


D.  B.  4.    Sold  Robert  Parker,  payable  1st  July — 
1  Cashmere  Shawl 


D.  B.  4.    Sold  George  Draper,  on  his  note, 
6  Cashmere  Shawls     . 
6         '/  // 

6  Silk  If 

========        10. 


.  @  $55. 

//     30. 
.    //     20., 


830 

180 
120 


3919 

96 
60 

60 


D.  B.  5.    Sold  R.  Banks  on  account, 

6  pr.  10-4  Super  Bath  Blankets 
6  ff    10-4     //      Rose 


// 


.  @310. 
//      8. 


D.  B.  5.    Sold  Edward  Pryor  on  account, 

3  pr.  10-4  Super  Bath  Blankets  . 

3   //    10-4     If      Rose         w 

1  ps.,  21?  yds.,  Blk.  Broadcloth  . 

20.       = 


.  @sio. 

//      8. 
.    //       6. 


60 

48 


80 

24 
129 


630 


108 


D.  B.  5.    Sold  William  Garden  for  Cash  deposited, 
500  ps.  Merrimac  Prints 

Total  sales  to  date 


@    $2.50 


183 


1250 
6306'  50 


50 


CONCLUDING  REMARKS. 

1.  Compare  the  above  footing  with  that  of  the  credit  merchandise  column  in  the  Journal, 
p.  161,  and  every  person  at  all  acquainted  with  the  subject  must  be  convinced  that  there 
cannot  be  a  more  conclusive  evidence  of  .the  correctness  of  this  part  of  the  work. 

2.  When  the  Sales  Book  is  kept  in  this  lorm  it  admits  of  being  posted,  as  we  have 
directed  at  the  Invoice  Book,  note  4,  p.  139 ;  post  the  personal  accounts  as  usual,  and  the 
merchandise  in  one  sum  from  the  foot  of  the  account  above. 

3.  If  no  Commission  Sales  Book  is  kept,  the  sales  on  consignment  can  be  short  extended 
as  in  first  entry  Apr.  30,  p.  140. 

4.  It  is  scarcely  necessary  to  observe  that  the  way  the  Sales  Book  is  generally  kept,  it 
affords  no  means  whatever  of  proving  its  contents  to  be  all  transferred  or  posted;  and  there 
is  the  strongest  reason  to  believe  that  errors,  deeply  affecting  the  interest  of  the  proprietors, 
jfrequently  pass  for  ever  undiscovered  in  this  book. 

5.  A  few  years  ago  a  Western  merchant  called  at  the  office  of  an  extensive  wholesale 
dealer  in  Philadelphia  to  pay  his  account.  On  referring  to  the  Ledger  it  was  found  bal- 
anced. Upon  the  merchant  representing  that  he  had  a  subsequent  invoice  from  them,  the 
Sales  Book  was  searched,  and  an  invoice  of  about  $1300  found  marked  off  that  book  as  if 
journalized,  but  no  entry  appeared  upon  the  Journal.  Now,  in  this  case,  it  is  evident  that 
the  discovery  of  this  omission  was  purely  accidental,  and  it  is  equally  certain,  that,  by  our 
plan,  it  would  have  been  undoubtedly  discovered  before  we  had  journalized  another  page. 

142 


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1867. 

Apr. 


Dr. 

1    Sundries 

P.  Duff  (S.  A.) 
*  P.  Duff 

.W.Gordon  (S.  A.) 
I  J.  Carter  (S.  A.) 
10,  Merchandise 

i  R.  Butler 
20 1  Merchandise 
30    Commission  Sales 
Merchandise 


Baknce  "^  old  Ledger,  fol.  4. 

Rec'd  balance  of  his  capital 

Rec'd  on  acct. 

Rec'd  balance  due  on  his  capital 

Rec'd  on  acct  of  his  capital 

Rec'd  from  Howe 

Rec'd  on  acct. 

Rec'd  of  Camp 

Rec'd  for  Stuart's  carpets 

Rec'd  of  J.  Post 


7716.78 


4&15 


May  I   1    S.  Gaynor^ 
Merchandise 
23    B.  Receivable 
'        Merchandise 

Duff  &  Gordon 
31    Merchandise 
S.  Gavnor 
Duff  &  Gordon 


Balance  in  hand  bro't  down 
Rec'd  on  acct. 
Rec'd  for  sales  this  day 
Rec'd  for  Spencer's  Note 
Rec'd  for  sales  this  day 
Rec'd  Martin's  acct.  Ledger  A.  p. 
Rec'd  for  Sales  this  day 
Rec'd  on  acct. 
Rec'd  of  R.  Evans,  Ledger  A.  p.  2 


873X5 
864.^ 


June '  4 


10 


20 


Balance  in  hand  bro't  do-v«m 

Joel  Post  Rec'd  in  full 

James  Reed  Rec'd  on  acct. 

Commission  Sales  Rec'd  of  Jennings  for  cloths 

R.  Butler  Rec'd  '^  mail 

Commission  Sales  Rec'd  of  McKenzie  for  cloths 

Duff  &  Gordon  Rec'd  of  R.  Evans  in  full 

Profit  &  Loss  Rec'd  gain  on  auction  purchase 


3158.90 
2939. 


219.90 


Total  amt.  received  to  date 


2100105 

115  53 

500 

1282  42 
2000 

305 

100 

874 

360 

138 


75 


7775 


75 


48 

50 

160 

284 

180 

20 

86 

20 

25 


15 


50 


87365 


9  65 
18 


100 
1200 

100 

1540 

41 

150 


25 


7775 


75 


825 


50 


3149  25 


11750 


50 


1.  In  business  the  Cash  Book  ought  generally  to  be  balanced  every  night;  never  at  longer 
periods  than  a  week.  For  obvious  reasons,  we  could  not,  in  a  work  like  this,  introduce  a 
sufficient  number  of  entries  to  do  so :  we  have,  therefore,  only  balanced  it  monthly. 

2.  The  manner  of  making  the  entries  upon  this  book,  is  in  all  respects  the  same  as  note 
9.  p.  53.  The  right  hand  column  is  used  for  carrying  forward  the  sums  total  of  all  money 
received  and  paid,  thereby  enabling  us  to  keep  a  constant  check  upon  the  Journal—Com- 
pare the  footings  above,  June  30,  with  those  of  the  Journal,  p.  161.  And  it  will  facilitate 
the  detection  of  error  to  balance  this  book  when  the  Journal  is  footed  at  the  bottom  of  any 
page,  where  you  can  compare  the  cash  columns  together. 

3.  Observe,  this  Cash  Book  is  always  balanced  in  the  inner  columns,  until  the  period  of 

144 


ACCOUNT. 

Cl 

1 

1867. 

Apr.     1 

City  Bank 

Paid  in  deposit 

5800 

Store  Expenses 

Pd.  for  fuel 

3 

James  Day 

Pd.  him  on  acct. 

8 

10 

Mdse. 

R.  Banks        • 

P.  Duff 

Pd.  freight  of  W.  Hay's  Invoice 
Pd.  him  on  acct.  of  store  expenses 
Pd.  him  on  acct. 

11 
20 
30 

60 

20 

B.  Receivable 

Pd.  R.  Parker  net  proceeds  of  note 

979 

50 

30 

Commission  Sales 

II                    H 

P.  Duff 

Pd.  cartage,  &c.,  on  Stuart's  Carpets 
Pd.  freight  on              #               » 
Pd.  him  on  acct. 

1 
24 
60 

50 

- 

W.  Gordon 
James  Carter 

Pd.  him 
Pd.  him 

25 
15 

City  Bank 

Pd,  in  deposit 
Balance  in  hand  carried  down 

750 

48 

15 
75 

,  7727 

60 

7775 

May 

1 

R.  Banks 
Expense  acct. 
James  Day 
W.  Gordon 
P.  Duff 

Pd.  him  on  acct. 
Pd.  a  quarter's  rent 
Pd.  him  on  acct. 

//         » 

II         II 

~    30 

60 

12 

10 

5 

23 

T.  P.  Cope  &  Sons 
James  Day 
"W.  Gordon 

Pd.  Charges  '^  "  Tribune" 

Pd.  him  ten  dollars,  James  Day* 

Pd.  him  on  acct. 

12 
10 
40 

31 

Profit  &  Loss 
E.  Pryor 
R.  Banks 
W.  Gordon 

For  counterfeit  money 
Pd.  him  on  loan 
Pd.  him  on  acct. 
II         II 

20 

200 

10 

5 

t 

City  Bank 

Pd.  in  deposit 

450 

864 

Balance  in  hand  carried  down 

4 

Pd.  him  on  acct 

873  65 
5l 

June 

James  Day 

• 

Commission  Sales 
City  Bank 

Duty,  &c.,  on  Hardman's  goods 
In  deposit 

748 
100 

1 

10 

II         II 
Commission  Sales 
James  Day 

II 
Pd.  F.  Hardman  in  full,  net  proceeds 
In  full 
On  acct. 

100 

1855 

13 

20 

R.  Banks 

90 

.. 

James  Haven 

In  full                                               »»• 

28 

29391 

• 

■ 

Total  payments  to  date 

11530 

60 

• 

Balance  .:,  i:....-i  ..,::....  u^wn 

- 

_- J 

>;  i 

11750 

50 



— 

posting  the  Cash  from  the  Journal ;  it  is  then  closed  in  the  outer  column ;  but  the  balance 
is  brought  down  or  forward  in  the  inner  column.  The  balance  brought  down  must  not  be 
extended  as  money  received  again.  This  was  done  before  the  last  balance.  It  must,  how- 
ever, be  added  in  in  striking  the  balance. 

4.  As  in  the  Ledger,  we  have  dropped  the  useless  appendages  of  to  and  by  in  this  booL 

5.  By  having  a  folio  column  next  the  date  or  the  money  column  the  entries  may  all  be 
posted  direct  from  this  book  to  the  Ledger,  and  the  sum  total  of  money  received  and  paid  is 
posted  in  one  sum  from  the  bottom,  as  from  the  Journal. 

*  Day's  signature — See  Note  7,  page  76. 

K  145 


I 


li' 


CHECK  BOOK. 

1.  In  this  form  we  follow  our  favorite  theory  of  making  this  book  prove  the  correctness 
of  its  representative  in  the  Ledger.  Our  column  of  deposits,  and  that  of  checks,  is  pre- 
served unbroken,  and  carried  forward  from  page  to  page,  corresponding  with  the  debit  and 
credit  side  of  the  Bank  account  in  the  Ledger — compare  and  see  p.  168 — until  we  get  our 
Bank  pass-book  balanced ;  then  we  balance  both  our  Check  Book  and  Bank  account  in  the 
Ledger,  bringing  the  balances  down  as  usual.  The  detection  of  errors  in  this  form  is  so 
simple,  and  so  speedy,  that  I  cannot  think  it  necessary  to  offer  any  directions. 

2.  I  must  insist,  however,  upon  your  drawing  and  numbering  all  your  checks  upon  your 
own  book.     Any  deviation  from  this  practice  will,  sooner  or  later,  give  trouble. 


Date. 


Depo- 
sit. 


Date. 


To  WHOM 
PAID. 


Apr. 

May 


7041. 

1703.65 

4337.35 


Bro't 

down 

May 

June 


7329.30 
3051.20 

427&10 


1 

5800 

130 

750 

1 

400 

13 

91 

7041 

-  - 

1887. 


2.   Check. 

1 


Apr.  20   for  2  notes    1     703  65 


No.  1.  New  York,  Apr.  20,  1867. 

The  Cashier  op  the  City  Bank,  New 
York,  pay  to  myself,  or  hearer,  Seven  Hun- 
dred  and  three  Dollars  y^'^. 

$703. /^5y.  P.  Duff. 


May  23  W.  Hav 

2703.65 


2   2000 


7041 


4337  35 

31    450 

{        400 

4    200 

100 

10    491  95 

100 
20  1250 


May  31  Cope  k  Son   3     500 

I,     li 
31  W.  Hay        4     200 

II    II 

Jane    4  Stuart's  n'e   5     291       i 
4  eg.  Henry      6   1060  20 


4  Cope  A  Son   7   XOOO         No.  . 


3051.20 

Eul. 


New  York, 


,186  . 


Bro't 
down 


7329  30 
4278  10 


27S  10 
—   -     pay  to 

7329  30  $ 


The  Cashier  op  the  City  Bank^  New  York, 


or  bearer 


Dollars  j-^. 


nnr 


I.    ll 


'i 


3.  When  a  deposit  is  made  it  must  be  entered  in  your  pass-book,  at  the  time  it  is  made ; 
all  writing  in  this  book  must  be  done  by  the  bank  officers.  The  New  York  city  banks  col- 
lect notes  and  bills  in  the  city,  free  of  charge ;  but,  if  protested  for  non-payment,  the  owner 
must  pay  the  expense  of  it. 

4.  Three  days'  grace  are  allowed  upon  all  notes,  for  which  discount  is  also  taken  :  thus, 
a  not«  having  60  days  to  run,  63  days'  discount  is  deducted. — See  note  2,  p.  45. — In  some 
of  the  States  they  charge  64  days'  interest  in  such  cases,  charging  interest  both  for  the  day 
of  date  and  day  of  payment. 

5.  You  can  at  any  time  show  the  balance  in  the  margin  with  your  pencil,  as  is  shown  by 
the  small  marginal  figures  above ;  but  the  deposit  and  check  columns  must  be  carried  forward 
unbroken  until  your  pass-book  is  balanced. 

6.  To  prevent  fraud,  when  dealing  with  strangers,  checks  are  sometimes  made  payable  to 
order :  the  bank  will  not  then  pay  them  until  the  holder  endorses  them  and  identifies  him- 
self the  person  named  in  the  check. 


EXPENSE  BOOK. 

1.  This  book  is  kept  for  the  purpose  of  enabling  the  Book-keeper  to  avoid  passing  all 
minute  items  of  expense  separately  through  the  books.  One  of  the  junior  clerks,  say  R. 
Banks,  is  paid  a  sum  of  money  sufficient  to  defray  the  expenses  for  a  few  weeks.  ^  The  Book- 
keeper debits  Banks,  and  credits  his  Cash  account  for  this  money  when  placed  in  Banks' 
hands.  The  Cash  account  is,  by  this  means,  kept  free  from  derangement ;  and  Banks  should 
be  provided  with  a  separate  drawer  to  keep  this  money  in ;  and  as  he  pays  it  out  for  ex- 
penses he  must  enter  a  precise  statement  of  all  the  items  upon  this  book,  adding  it  up  and 
carrying  forward  the  amount  to  the  end  of  the  month,  or  to  the  time  when  it  is  proposed  to 
enter  the  amount  in  the  books.  After  examining  the  amounts  and  additions,  the  Book- 
keeper debits  Expense  and  credits  Banks  for  the  amount,  at  the  same  time  balancing  this 
book  as  below. — See  Day-Book,  note  3,  p.  155.  Afterwards  this  book  re-commences  in  all 
respects  as  before,  Banks  receiving  an  additional  sum  from  the  Cashier  when  the  amount  in 
his  hands  is  expended. 

2.  If  it  be  preferred,  however,  when  the  amount  is  paid  into  Banks'  hands,  the  Book- 
keeper may  make  Expense  Account  Dr.  To  Cash  at  once,  without  passing  it  into  Banks' 
account.  The  amount  is  then  placed  on  the  Cr.  side  of  this  book,  and  the  details  of  ex- 
penditure on  the  Dr.  side,  in  all  respects  as  before,  until  the  money  is  expended,  when  the 
book  should  be  balanced,  and  re-commence  anew  as  before.  Either  of  these  methods  will 
greatly  abridge  the  expense  account  in  any  business. 


Apr.  10 
12 


14 
15 


For  Cash  paid  postages 

cartage  of  goods 
coach-hire 
laborers 
«  2  rms.  wrapping-paper    2  50 , 


20 

j 

25 

30 


May     1 


10 

\i 

15    n 

25 

1/ 

June 

5 
10 

n 
n 

20 

II 

1867. 


41b  twine 
for  mending  desk-stool 
ream  letter-paper 
postage  to  N.  Orleans 
cartage  of  goods 
Box  rent  at  Post  Office 
printing  500  cards 
'  painting  a  new  sign 
blank  book 
wafers 
sealing-wax 
6  mos.  sub.  Tribune 
1  year   n     Sun 
Taxes 

postage  for  R.  Butler 
II  W.  Hay 

laborers 
omnibus 
advertising 
postages 
wafers 
ink,  sand,  &c. 


2  50 
60 

3  50 
5 

6' 

20 
&0 

3 

3 

4 
10 
20 
50 
10 

1 
10 
10 
22 


June  30  By  amount  to  R.  Banks  Cr.     45 


15 


45 


U(\ 


147 


n 

Ml 


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1867. 

May 

June 

May 
June 

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1 
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05  O 

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THE  DAY  BOOK -SET  II. ,  PART  II. 


INTRODUCTORY  REMARKS. 

1.  This  set  opens  with  the  formation  of  a  new  firm,  by  the  admission  of  James  Carter 
as  a  partner.  It  will  be  seen  that  the  contents  of  the  old  Ledger  form  the  opening  entries 
of  these  Books. — Compare  Balance  account,  p.  134,  with  the  first  entry  in  the  following 
Day  Book,  also  with  the  first  entry  in  the  Invoice  Book,  p.  137,  and  the  first  debit  entry 
Cash  Book,  p.  144.  It  is  arranged  that  each  partner  shall  contribute  $3000  capital;  the 
two  old  members  bring  in  the  effects  of  their  former  business  as  so  much  of  their  capital, 
the  new  firm  at  the  same  time  assuming  their  liabilities. 

2.  The  usual  manner  of  opening  and  conducting  partners*  accounts  is  to  credit  each  for 
what  capital  he  pays  in  at  the  time  the  books  are  opened  and  for  each  succeeding  payment 
afterwards.  I  would,  however,  recommend  that  two  accounts  be  opened  with  each  partner, 
a  PRIVATE  ACCOUNT  and  a  stock  account. — See  the  partners'  private  accounts,  p.  165, 
and  their  stock  accounts,  p.  173.  The  stock  account  to  be  credited  for  the  whole  amount 
of  capital  to  he  paid  in.  The  private  accounts  are  to  be  debited  for  any  amount  that  is  de- 
ficient of  the  stock,  and  for  what  they  withdraw  from  the  firm,  and  credited  for  v,  hat  they 
pay  in  of  the  deficient  stock,  and  for  what  they  may  temporarily  pay  over  their  capital. — 
See  Duff"'s  and  Carter's  accounts,  p.  165. 

3.  By  this  arrangement,  the  stock  account  of  each  partner  remains  undisturbed  until  the 
time  of  closing  the  books,  and  if  any  adjustment  of  interest  has  to  take  place  it  will  be 
upon  the  private  account. 

4.  All  judicious  practical  merchants  are  aware  of  the  importance  of  avoiding  all  needless 
exposure  of  their  affairs.  This,  in  some  establishments,  is  unavoidable  where  the  partners' 
accounts  and  the  results  of  the  business  are  all  exhibited  on  the  public  Ledger.  In  order 
to  avoid  this  inconvenience  I  have,  in  this  set,  exemplified  the  Private  Ledger. 

5.  Keeping  this  book  entails  no  additional  trouble  upon  the  book-keeper;  there  are  no 
entries  to  make  in  it,  except  at  the  opening  and  closing  of  the  Books.  It  opens — see  p. 
173 — with  nothing  but  the  partners'  stock  accounts;  the  Profit  &  Loss,  Balance  and  Sus- 
pended list  are  opened  at  the  time  of  closing.  By  referring  to  these  accounts — p.  174 — it 
will  be  seen  that  the  results  of  the  business  can  only  be  known  to  those  who  have  access  to 
this  book;  it  is  impossible  to  find  out  any  thing  about  it  from  the  public  Ledger  alone. 

6.  In  business  it  will  also  be  advisable  to  place  the  opening  entry  of  the  business  upon  a 
Private  Journal,  from  whence  it  is  posted  direct  to  the  Ledger  without  appearing  upon 
the  public  Journal.  This  will  create  no  impediment  to  our  system  of  proof,  for  the  book- 
keeper has  only  to  obtain  the  footing  of  this  private  Journal,  and  add  it  to  that  of  the 
public  Day  Book  and  Journal,  and  the  amount  must  agree  with  that  of  the  Trial  Sheet.  It 
is  deemed  unnecessary  to  give  an  exemplification  of  this  private  Journal  here.  It  stands 
connected  with  the  public  Journal  upon  the  same  principle  as  the  private  Ledger  does  with 
the  public  one.  Indeed  the  readiest  way  to  comprehend  them  is  to  consider  the  two  books 
as  one. 

7.  The  following  Day  Book  is  made  up  partly  of  original  entries  and  partly  by  transfers 
from  the  old  Ledger  and  the  Auxiliaries.  I  shall  show  hereafter  that  the  Journal  may  be 
composed  direct  from  the  Auxiliaries,  without  passing  the  entries  through  the  Day  Book, 
but  for  reasons  before  given — p.  62 — I  do  not  consider  it  advisable  to  attempt  that  process, 
until  after  the  student  is  entirely  master  of  the  whole  subject.  The  mode  of  procedure  in 
transferring  the  Auxiliaries  to  the  Day  Book  is  not,  however,  unlike  that  of  journalizing 
them;  it  forms  a  useful  preparatory  exorcise  for  that  operation. 

149 


h 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 

1.  It  does  not  matter  which  of  your  Auxiliaries  you  transfer  first:  we  shall  commence 
with  the  Invoice  Book,  p.  137.  We  commence  on  the  10th  April  (the  previous  entry  being 
already  transferred  in  the  opening  entry),  and  transfer  the  two  entries  under  that  date  to 
the  Day  Book — compare  and  see.  Then  turn  to  the  Sales  Book,  p.  140,  and  do  the  same 
with  three  entries  we  find  under  that  date,  taking  care  to  mark  them  off  these  books ;  but 
not  until  they  are  actually  entered  in  the  Day  Book — Note  4,  p.  142;  next,  look  into  the 
Commission  Sales  Book,  but  it  contains  no  entries  on  this  day.  Go  on  to  the  Cash  Book — 
p.  144 — aiid  you  find  two  debits  and  three  credits;  pass  them  into  the  Day  Book  and  mark 
them  off  as  directed — Note  7,  p.  53.  The  entries  of  the  Check  Book  are  generally  made 
on  the  Day  Book  when  they  occur.  The  contents  of  the  Expense  Book  are  not  usually 
transferred  until  the  end  of  the  quarter  or  the  end  of  the  month,  as  may  be  directed. 
Bills  Receivable — p.  148 — has  one  transfer,  and  Bills  Payable  two  upon  this  date.  After 
they  are  transferred  mark  them  off  as  directed  in  the  Cash  Book.  This  completes  the 
transfer  of  that  day's  business  from  the  Auxiliaries :  you  now  re-commence  and  go  over 
them  all  in  the  same  way  again  for  the  next  day's  business,  and  so  on  until  the  contents  are 
all  transferred.  Observe,  you  cannot  transfer  several  dates  from  any  one  book  in  one  entry, 
because  this  throws  the  dates  in  confusion  in  the  Ledger. 

2.  Our  Day  Book  is  footed  and  forwarded  from  page  to  page,  and  if  all  journalized  cor- 
rectly, must  always  exactly  agree  with  that  book.  We  generally  only  pencil  the  footings 
of  the  Day  Book  in  practice :  and  you  ought  to  bring  forward  these  footings  as  fast  as  you 
journalize,  in  order  to  get  the  earliest  notice  of  error  if  it  gets  in.  You  may  foot  your 
Day  Book  column  any  where  on  the  page,  when  you  desire  to  find  the  amount  corresponding 
with  the  foot  of  the  page  on  the  Journal. 

3.  In  making  compound  entries  upon  this  Day  Book,  you  must  guard  against  the  practice 
of  extending  both  debits  and  credits,  as  many  persons  do.  For  instance,  in  the  first  entry 
on  the  opposite  page,  if  we  had  full  extended  the  $5410.55  a  second  time,  it  would  have 
caused  a  disagreement  between  the  Day  Book  and  Journal  at  once,  of  that  amount. 

4.  In  order  to  have  our  books  all  agree  in  amount,  it  is  necessary  that  all  entries  relative 
to  the  balancing  of  accounts  at  the  time  of  settlement  should  originate  upon  this  book. — 
See  first  entry,  May  10,  p.  153. 

5.  We  have  dropped  the  useless  practice  of  perpetually  writing  the  name  of  our  place 
of  business  at  the  head  of  every  page  of  our  Day  Book  and  Journal.  '  It  is  proper  and 

.perhaps  necessary  to  do  so  on  the  first  page  of  any  book,  but  the  repetition  of  it  afterwards 
is  entirely  useless.  But  it  will  often  be  found  useful  to  insert  the  day  of  the  week  with  the 
day  of  the  month. 

6.  I  would  advise  the  student  not  to  be  in  too  much  haste  to  write  these  exercises,  but 
first  take  a  survey  of  the  operations  recorded  by  tracing  them  from  one  book  to  another  up 
to  the  Ledger:  thus  mentally  examining  the  whole  subject  before  he  attempts  the  mechani- 
cal execution  of  it. — See  Note  4,  p.  27. 

7.  I  need  hardly  observe  that  if  the  preceding  Sales  Book  be  dispensed  with  then  full 
particulars  of  every  sale  must  appear  upon  the  Day  Book. 

150 


NEW  YORK,  Thursday,  April  1, 1867. 


P.  Duff,  W.  Gordon,  and  J.  Carter  have  this  day  entered  into  partnership; 

it  is  agreed  that  each  partner  shall  furnish  a  capital  of  .     3000. 

Duff  and  Gordon  bring  in  as  a  part  of  their  capital,  the  effects  of  their  late 

firm,  and  the  new  firm  assumes  their  liabilities  '^  their  Balance  acct. 

Ledger  A.  fol.  4,  viz. : 
*Cash  in  hand  .         .         .         .       "^  Ledger  A.  fol.  1. 
Merchandise 
Edward  Pryor  owes  . 
S.  Gay  nor 

Balances  due  to 
T.  P.  Cope  &  Sons     . 
Wm.  Hay 
James  Carter     . 
James  Day 

P.  Duff  for  his  net  capital 
W.  Gordon    do.      do. 


Ledger  A 


1. 
3. 
3. 

fol.  1. 
1. 
2. 
3. 
1. 
1. 


2100.05 
3217.50 

2. 
91. 

504. 
200. 
36.50 

68. 
2884.47 
1717.58 

5410.55 


u 


Rec'd  the  following  sums  in  cash  "^  Cash  Book  1. 
From  P.  Duff  for  Balance  due  on  his  capital 

H  do.     on  his  private  account     . 

//      W.  Gordon  for  Balance  due  on  his  capital    . 

u     James  Carter  on  account  of  his  capital 
If  

C.  B.  1. 


115.53 

500. 
1282.42 
2000. 


Paid  the  following  sums 
To  the  City  Bank  in  deposit 
For  Fuel  .... 
To  James  Day  on  account    . 


5800. 
3. 
8. 


•James  Carter's  ^  joint  capital  is       .         .         .         .         $3000. 

Balance  due  him  by  Duff  and  Gordon  as  above  is  36.50. 

Cash  received  as  above         ....     2000.  2036.50 

Balance  due  on  his  capital  to  debit  of  his  private  account  . 

Saturday,  Id 


.Bought  Mdse.  of  Wm.  Hay  @  3  mos.  "^  Invoice  Book  1. 
Paid  cash  for  freight  of  same 


2494.40 
11.60 


Bought  of  A.  Stuart  &  Co.,  at  30  days,  Mdse.  "^  Invoice  Book,  p.  1. 


Sold  R.  Butler  on  account,  @  3  months, 

Mdse.  "^  Sales  Book,  p.  1 

Sold  E.  Pryor  on  acct.  Mdse.  "^  S.  B.  1. 
Sold  R.  Howe  for  cash        do.        do.    .         . 


596.50 

16. 
305.75 


Received  cash  of  R.  Butler  on  acct. 

n 
Paid  cash  to  R.  Banks  on  acct.  of  Expenses 
//      do.  to  P.  Duff  on  account 


20. 
30. 

Forward 


1.  This  entry  embraces  both  sides  of  the  Balance  account  in  the  last  Ledger.— See  p.  134.    The  pupil 

will  insert  the  pages  of  his  own  Ledger — not  ours. 

2.  As  the  journalizing  proceeds,  mark  the  entries  oflf  the  Day  Book  as  directed.— Note  7,  p.  28.    The 

pages  of  the  Journal  are  not  necessary :  the  dates  are  always  a  BuflScient  reference. 

3.  See  Note  2,  p.  149. 

151  ~ 


5410    55 


I 
3897    95 


5811 


963   50 

2506 

I 

216    . 


I 


2 


n 


Saturday,  AprU  10,  1867. 


Bro't  over 
Received  Samuel  Gaynor's  note  No.  1,  @  30  days,  for  bal.  of  acct. 


AccM  Wm.  Hay's  draft  No.  1  on  us,  @  10  days,  for  bal.  due  him  1st  inst. 
Acc'd  T.  P.  Cope  &  Sons'  draft  No.  2  on  us,  @  10  days,  for  bal.  due  them 

Gave  James  Day  our  order  on  E.  Pryor,  payable  in  Merchandise,  for 

Tuesday,  20. 


Paid  our  acceptance  No.  1  to  Wm.  Hay,  due  23d  inst.,  $200,  less  disct. 

10  cts $199.90 

do.        do.        No.  2  to  T.  P.  Cope,  due  23d  inst., 
$504,  less  disct.  25  cts 503.75 

Paid  by  check  on  City  Bank        ....       703.65 
Amount  of  discount  is .35 


Paid  E.  Pryor's  order  in  favor  of  J.  Burk  in  Mdse.  from  store 
Paid  S.  Gaynor's  order  in  favor  of  C.  Rhodes  in  Mdse.  from  store 


Cash  to  Mdse.  received  for  sale  to  J.  Camp   . 


Mdse.,  Dr.  to  A.  Stuart  &  Co.  for  Invoice  of  Silks,  &c. 


Discounted  for  R.  Parker  his  note  No.  2,  @  4  mos.,  for  $1000. 
Paid  him  in  cash,  net  proceeds 


43^^  months'  discount  is  . 


Friday,  30. 


979.50 
20.50 


Paid  cash  freight  and  cartage  of  A.  Stuart  &  Co.'s  goods 
//      P.  Duff  on  acct.        ...... 

tf     Wm.  Gordon 

//      James  Carter  ...  ... 

If      the  City  Bank  in  deposit 

n 


25.50 
60. 
25. 
15. 
750. 


Received  cash  for  sale  of  A.  Stuart  &  Co.'s  goods,  C.  S.  B.  1. 

Mdse  f  S.  B.  1 

Saturday,  May  1( 


// 


360. 
138. 


'Rec'd-on  account  of  our  James  Carter,  cash  deposited  in  City  Bank. 
Net  proceeds  of  his  Bill  on  Gibson,  Bright  &  Co.      .         .         .     $300. 


Interest  due  him  on  Hall's  mortgaore 


// 


Bought  Mdse.  of  Edward  Pryor,  I.  B.  1. 
do.  of  Sam'l  Gaynor,    do.    2. 


// 


Sold  Mdse.  ^  Sales  Book  2.     To  P.  Duff  on  account 
To  C.  Spenser  on  his  note  No.  3  @  20  days     . 

If   W.  Gordon  on  account        .         .         .         .         . 

If   James  Carter  on  account    .  .         .         . 

H   Robert  Banks 


// 


*Rec'd  of  R.  Butler  his  note,  No.  4,  @  3  mos.,' to  close  acct. 

Forward 


1.  Tlie  firm  have  no  entry  to  make  with  Gibson,  Bright  &  Co. ;  though  this  bill  waa  drawn  by  Carter 
one  of  our  partners,  it  was  on  his  own  private  account.  We  credit  him  for  the  money  received 
for  the  Bill,  and  also  for  the  interest  collected  on  Hall's  mortgage. 

X  The  number  of  a  note  must  always  accompany  it,  to  enable  ua  to  post  it  as  directed,  note  1,  p.  167. 


19873  25 
91 

200 
504 

20 


704 

45 
397 

874 

75 


1000 


875  150 


498 


400 


329 


359  75 

i 

496  50 
26742 


Saturday,  May  1,  1867. 


Bro't  forward     . 
Gave  our  note.  No.  3,  to  A.  Stuart  &  Co.,  to  close  acct.,  for 

■■- - -^ •■  1/  — — — 

Received  Cash  on  acct.  from  S.  Gaynor,  C.  B.  1.      .         .         .  50. 

a  II    for  sales  this  day 160. 

-" -  II  '. 1 


Paid  Cash  to  R.  Banks  on  acct.,  C.  B.  1 
'/        //     a  quarter's  rent  of  store 
/'         II      to  James  Day  on  acct.    . 
ff         II      to  W.  Gordon       // 
//      to  P.  Duff  II 


30. 

60. 

12. 

10. 

5. 


Monday,  10. 


'  Rendered  James  Day  his  account;  balance  due  him  is    . 


*  Rendered  Samuel  Gaynor  his  account;  balance  due  us  is 

~—^=   Thursday,  13.  ■-— :.:i 


Received  Cash,  paid  the  City  Bank  in  deposit,  for  S.  Gaynor's  note  No.  1 

r^^- — - —  — =^     Monday,  23.  

Gave  Wm.  Hay  our  check  on  the  City  Bank  on  acct.  for . 


// 


Bought  Mdse.  of  T.  P.  Cope  &  Sons  on  acct.,  I.  B.  2. 

______  /;  


Shipped  by  the  Brig  "Tribune,"  by  order  and  for  account  of  T.  P.  Cope 

&  Sons, 

I  Mdse.  "^  Sales  Book  2 540. 

'  Paid  charges  in  cash       ........  12. 

Commission  on  $540,  @  5  per  ct 27- 

• ^  ,- ' 

Received  Cash  for  Spencer's  Note  No."  3 284.50 

//  II     from  R.  Martin  for  an  old  debt  due  Duff  &  Gordon     20. 

If           II     for  sales  of  Mdse.  this  day         ....  180. 

— -•- /.*             " 

Paid  Cash  to  .James  Day  on  account        .....  10. 

11     to  W.  Gordon        //                 j40. 

^--==    Tuesday,  31  •  -zz: 


Balance  in  deposit  in  the  City  Bank  this  day  on  settlement 

■ —  ^-  —  II  

Received  Cash  this  day  for  sales      .... 

"  II     of  S.  Gaynor  on  account  . 

n  If     oi^.  Evans  for  Duff  &  Gordon 

„  


Paid  Cash  to  Edward  Pryor  in  loan 
»         II     Lost  by  counterfeit  money 
n         II     to  R.  Banks  on  acct. 
n         'I      W.  Gordon    . 
'/         '/     City  Bank  in  deposit 


Forward 


86. 
20. 
25. 


200. 

20. 

10. 

5. 

450. 


'26742 
291 


210 


117 

28 

82 

91 

2000 
2300 


579 


484    50 

50 

4337    35 


131 


685 
38127 


85 


1.  In  order  to  preserve  that  liarmony  between  the  books,  upon  wliich  our  method  of  proof  i-  fiiuink-d. 
no  entry  must  appear  upon  the  Ledger  (except  the  olosing  entries  at  the  geni'ial  liiUance- witliout 
originating  upon  the  Bay  Book  or  some  of  the  auxiliaries.  When  wo  settle  with  an  iadividual  we 
enter  the  balance  as  above,  and  pass  it  through  the  Journal. — Notes  1  and  2,  p.  15'J. 


153 


/ 


Tuesday,  May  31,  1867. 


Friday,  June  10,  1867. 


lii 


-I 

li 


Bro't  over 
Sold  W.  Evans  on  acct.  Mdse.  '^  Sales  Book  2 

James  Reed  on  acct.  n  u  2        , 

Joel  Post  //  "  »  2        . 


20. 
182. 

18. 


'   Sold  Robert  Butler  (Erie)  on  acct.  Stuart  &  Co.'s  goods,  C.  S.  B.  1     576. 
j  of  our  Mdse.,  S.  B.  2         1.50 


Gave  T.  P.  Cope  &  Sons  our  check  on  City  Bank  on  acct. 
Grave  W.  Hay  u  h  # 


*  Received  cash  on  acct.  of  James  Carter,  deposited  in  City  Bank. 

For  Cutler,  French  &  Co.'s  Note 250. 

From  Stay  &  Hall  on  acct 150. 

Saturday,  June  4, 

Take  to  our  acct.  3  ps.  A.  Stuart  &  Co.'s  Carpet,  I.  B.  2  . 

I' 

Bo't  Mdse.  of  S.  Henry  &  Co..  I.  B.  2,  @  5  f  ct.  disct.  for  Cash  $1116. 

Net  amount  paid  by  check  on  City  Bank  .         .         .         .  1060.20 

I>iscount 55.80 


Paid  by  check  on  City  Bank  our  Note,  No.  3,  in  favor  of  A.  Stuart  &  Co. 

.  -  g  . 

J.  Reed's  private  acct.  is  Dr.  for  transfer  from  '-  Sundry  Drs.  acct."  . 


Received  Cash,  deposited,  of  E .  Pryor  for  our  loan  of  31st  ulto. 


Sold  Merchandise,  S.  B.  3,  to  James  Reed  on  acct. ...  96. 

»  to  Wm.  Hay  n  .         .         .60. 

»  to  Robert  Parker  //         ,         .         .60. 

»  to  Geo.  Draper  on  Note  No.  5,  @  3  mos.  630. 

// _ — — 

Received  Cash  of  Joel  Post  in  full 18. 

'/  of  James  Reed  on  acct 100. 

>     u  of  Jennings  &  Co.  for  sale  of  Hardman's  goods      1200. 


Paid  Cash  to  James  Day  on  acct.    .         .         .         . 
I  n  to  City  Bank  in  deposit  .         .         .         . 

#  to  freight  and  duty  on  Hardman's  cloths, 


5. 

100. 

748. 


Settled  with  T.  P.  Cope  &  Sons. 

Gave  them  our  check  on  the  City  Bank  for 

Our  Note,  No.  4,  at  30  days  to  close  acct. 


1000. 
221. 


Forward, 


1.  Here,  as  at  Note  1,  p.  152,  the  firm  has  collected  money  for  tneir  partner.  Carter.    It  is  almost  unne- 

.  cessary  to  say,  that  we  have  uo  entry  to  make  al>out  Cutler,  French  &  Co.'s  Note,  nor  about  Stay 
&  Hall's  account,  though  we  name  them  on  the  Day  Book.  "We  credit  Carter  for  the  amount  col- 
lected; and  he  keeps  his  own  private  account  with  these  parties. 

2.  We  do  not  pass  this  cash  into  the  Cash  account  because  we  sent  it  immediately  to  the  Bank.    The 

Bank  account  by  this  means  materially  diminishes  the  cash  transactions,  and  renders  that  acct. 
easier  to  keep.— Note  1,  Fryer's  acct.,  p.  133. 


38127 


220 


577 

500 
200 


85 


50 


400 
180 


1116 

291 

182 
200 


846 


1318 


853 


1221 
46232    35 


Brot.  Forward 


Bot.  of  William  Hay  on  account  Mdse.  I.  B.  2 
Bot.  of  Thomas  Freeman  on  account  do.         2 


Sold  R.  Banks  on  account  Mdse.  S.  B.  3 

do.    E.  Pryor  do.  3         .         .         . 

n  — 

Discounted  at  City  Bank  R.  Butler's  Note  No.  4.  for  $496.50 
^      Net  proceeds  at  our  Cr.  in  deposit     .... 
55  days'  Discount     ....... 

It  — 

Received  Cash  on  account  of  R.  Butler  by  mail 

Rec'd    do    of  McKenzie  &  Abbot  for  sale  of  Hardman's 

goods,  C.  S.  B.  1    . 
Rec'd    do.     of  R.  Evans,  for  Duff  &  Gordon  .  . 

- •- - ^- --- -  n  -- ^ - 

*  We  close  sales  of  Hardman's  cloths.     Total  sales  C.  S.  B.  1, 
Our  commission  on  the  same  5  "^  ct.,  is  . 

Net  proceeds  paid  F.  Hardman  in  cash,  is        .         .         . 

•  - — n  

Paid  cash  deposit  in  the  City  Bank         .... 
Paid  James  Day  cash  in  full 

Monday,  20.       

Bot.  Mdse.  of  James  Haven  on  account  I.  B.  2 

Bot.  Mdse.  of  A.  Stuart  &  Co.  on  our  Note,  No.  5,  @  3  mos. 


168. 
72. 

108. 
183. 


491.95 
4.55 

100. 

1540. 
41.25 

is  $2740. 
137. 

1855. 

100. 
13. 


28. 
1000. 


// 


Sold  Mdse.  to  W.  Garden  for  cash  deposited 


Bot.  at  auction  10  cases  Irish  linen,  amounting  to  81500.     Sold  them  again 
at  the  auction  room  for  10  ^  ct.  advance.     Rec'd  the  advance  in  cash. 


Paid  cash  to  R.  Banks  on  account  ...... 

:  Paid  cash  to  James  Haven  in  full  ...... 

I  :=.=r-::r^=:^  ThuTScLay,  30 = 

I  *  Cash  paid  Expenses  Apr.  1st  to  date  by  R.  Banks  '^  Expense 
I  Book  1     ........         . 

R.  Banks'  salary  as  clerk  1st  April  to  date  is  . 

*  Total  transactions  to  date 


90. 

28. 


45. 
300. 


154 


1.  See  Note  3,  p.  143.    Where  you  will  see  how  this  account  is  closed  upon  the  Sales  Book.    There  is 

no  separate  account  opened  for  it  upon  the  Ledger. 

2.  For  the  reasons  given  in  Note  2,  last  page,  this  cash  never  appears  in  the  cash  account. 

S.  Refer  to  Notes  1  and  2,  p.  147.  You  perceive  Banks  must  here  bo  credited  for  his  salary  and  also  for 
what  he  has  paid  out  for  the  store  by  the  Expense  Book. 

4.  Compare  this  amount  with  the  footing  of  the  Journal,  p.  161.  This  affords  indisputable  proof  of  the 
Day-Book  being  entirely  Journalized.  To  every  practical  merchant  the  importance  of  this  test 
between  these  books,  must  be  at  once  apparent ;  for  there  is  no  step  in  the  process  of  book-keeping, 
where  omissions  are  more  likely  to  take  place,  and  where  they  are  less  looked  for  than  between  this 
book  and  the  Journal.  The  major  part  of  Book-keepers  direct  all  attention  to  the  Ledger:  and 
they  will  sometimes  search  for  weeks  to  find  out  a  trifle  that  jirevents  their  trial  from  coming  out 
correct,  while  they  perhaps  never  spend  an  hour  in  comparing  their  Day-Book  and  Journal.  And 
after  all,  their  trial  of  the  Ledger  proves  nothing,  even  when  it  comes  out  correct,  except  that  the 
Ledger  agrees  with  itself.  If  it  does  not  prove  it  to  agree  with  any  one  other  book,  while  our  trial 
proves  it  to  agree  with  the  whole  of  them.— Note  4,  p.  142. 


155 


46232  35 
240 

291 


496  50 


1681  25 


1992 

113 

1028 
1250 

150 

118 


345 
53937  10 


REMARKS  ON  THE  JOURNAL. 

The  following  Journal  is,  in  form,  similar  to  that  of  the  Day-Book,  p.  125. 

The  columns  on  the  left  of  the  writing  contain  the  debits  and  those  on  the  right  the 
credits.  The  columns  next  the  writing  on  each  side  are  the  only  ones  posted  in  detail :  the 
two  others  representing  cash  and  merchandise,  are  footed  and  forwarded  from  page  to  page 
to  the  end  of  the  month,  or  the  end  of  the  year,  as  may  be  desired,  and  from  there  posted 
in  one  sum  into  the  Ledger,  and  the  post  mark  affixed  as  usual. — See  posting  of  our  cash 
and  merchandise  accts.  from  the  foot  of  page  161. 

In  the  Journal  in  the  first  part  of  this  work,  an  entry  was  made  for  every  receipt  and 
payment  of  cash,  and  for  every  purchase  and  sale  of  merchandise.  Here  you  will  find 
several  collected  together — see  second  and  third  Day-Book  entries,  April  1st, — and  the 
student  will  perceive  that  there  are  several  other  entries  that  might  be  incorporated  in  one, 
for  instance,  the  first  and  second  entries  on  the  10th  April,  are  both  merchandise  debits,  and 
might,  therefore,  have  been  journalized  in  one  entry ;  but  I  thought  it  better  to  leave  some- 
thing to  the  student's  own  discretion  in  the  matter. 

Before  footing  your  Journal,  always  go  over  the  entries  again  to  see  that  all  the  amounts 
are  extended  into  the  proper  column.  Then  foot  them  first  upon  waste  paper,  which  ought 
to  be  ruled  to  the  pattern  of  the  Journal,  otherwise  you  are  sometimes  liable,  after  the  addi- 
tions are  correctly  made,  to  transpose  the  figures,  and  place  them  in  the  columns  to  which 
they  do  not  belong. 

As  you  foot  and  forward  the  Journal,  the  Day-Book  ought  to  be  kept  up  also  in  order  to 
get  the  earliest  intimation  of  error,  if  it  gets  in.  The  Day-Book  is  generally  only  footed  in 
pencil,  and  you  can  do  it  anywhere  on  the  page  where  you  wish  to  obtain  the  amount  that 
ought  to  correspond  with  the  Journal. 

In  posting  the  Journal  to  the  Ledger  you  make  use  of  the  same  phraseology  as  upon  the 
Double  Entry  Ledger  in  the  first  part  of  this  work.  In  our  last  Ledger,  which  is  intended 
principally  for  a  retail  business,  we,  to  some  extent,  particularized  the  Day-Book  entries : 
that  principle  of  posting,  however,  can  hardly  ever  be  carried  to  any  extent  in  a  wholesale 
business.  Indeed  it  will  rarely  ever  be  necessary,  because  bills  or  invoices  almost  always 
accompany  the  sale. 

As  your  posting  is  completed,  you  should  always  go  over  the  work  again  and  check  it  as 
directed — Note  2,  p.  32.  No  one  can  expect  to  keep  his  books  free  from  errors  without  this 
precaution. 

These  books  are  specially  adapted  to  daily  posting,  and  if  my  young  readers  are  disposed 
to  profit  by  my  experience  in  this  matter,  they  will  never  allow  their  books  to  fall  behind  for 
a  single  day,  if  they  can  possibly  avoid  it.  In  some  kinds  of  business,  keeping  the  books  up 
is  almost  indispensable  for  successful  and  efficient  management.  There  are  a  great  many 
book-keepers  who  have  got  it  into  their  heads,  that  posting  books  once  a  week,  or  once  a 
month,  is  sufficient.  There  is  a  method  of  journalizing  and  posting  all  accounts  only  once 
a  month,  upon  which  I  shall  have  some  observations  to  make  hereafter :  but  I  now  repeat 
that  my  advice  to  all  book-keepers  is,  to  keep  their  books  in  such  a  manner  that  when  called 
upon  for  an  account,  they  have  only  to  open  the  Ledger  and  find  the  whole  account  before 
them,  ready  for  settlement.  Those  who  will  give  this  mode  of  posting  six  n:onths'  trial, 
will  not  be  easily  persuaded  to  change  it. 


i|; 


156 


! 


Drs. 


NEW  YORK,  Aprn  1,  1867. 


Cbs. 


Hdse. 


3217  50 


Cash. 


210(y  05 


2506 


216 


2 
91 


3 
1 


8897  95 


309 


IOC 


75 


Sundries  To  Sundries,  $5410.55 
1  Cash         .... 
Mdsc.  .... 

Edward  Pryor    ,        ,        , 
Samuel  Gaynor  . 

To  T.  P.  Cope  &  Sons    . 

William  Hay     . 

James  Carter's  Stock  acct 

James  Day 

P.  DuflF's  Stock  acct. 

W.  Gordon's  Stock  acct. 


n 
II 
It 

II 


Ledg.  A,  fol.  1 


Cash. 


Mdie. 


// 

// 

II 

I 

I 

I 

I 

I 

It 


Cash  To  Sundries, 

To  P.  Duff's  Stock  acct. 
"   P.  Duff      .... 
"    W.  Gordon's  Stock  acct.    . 
"   James  Carter's  Stock  acct. 


504 
200 
36  50 
68 
2884  47 
1717  58 


1!  115  53 

ll  500 

i;  1282  42 

1  2000 


// 


5800  4 

3  4 

8  3 

963  50  1 


Sundries  To  Cash 
2  City  Bank 
Expense  .account. 
James  Day. 


James  Carter,  Dr. 

To  James  Carter's  Stock  acct. 

" 10.    -= 

Mdse.  To  Sundries, 

To  Wm.  Hay  .... 
Cash 


5811 


963  50 


2     2494  40 


// 


1160 


tt 


Mdsc.,  Dr.  to  A.  Stuart  <fc  Co 2       216 


596  50   5 
16        3 


Sundries  To  Mdse., 
R.  Butler. 
Edward  Pryor. 
Cash. 


918  2d 


Cash  To  R.  Butler, 5' 


100 


// 


20 


5 
1 


5939  at)  64031  75     7530 

6403  75 
5939  50 

19873  25 


Sundries  To  Cash, 
R.  Banks. 
P.  Duff. 


Amounts  forward 
Cash 
Merchandise   . 


Proof 


50 


1.  In  opening  new  books,  always  give  a  direct  reference 

to  the  old  Lodger  for  the  transfers. 

2.  We  now  open  an  account  with  the  Bank,  and  debit  it 

for  all  deposits,  and  credit  it  for  all  checks  we  draw. 
—Notes  1  to  7,  p.  146. 
Post  mark  each  entry  with  the  Ledger  page,  on  the  same 
side  and  on  the  same  line  with  the  sum.  Some 
write  their  jMjst  uiai'ks  in  red,  but  I  can  see  no 
practical  utility  in  doing  so;  and  it  keeps  you 
handling  two  pens,  while  it  is  desirable  to  confine 
your  whole  attention  to  matters  of  greater  import- 

al'.Ctr. 


1  il  ' 


13082  10  5872  60 
5872  60 
918  25 

19873  25 


913  25 


157 


M 


\k 


442 


874 


2        Drs.  April  10,  1867.  Cba. 

•  • 

Mdse.        Cash.  .  .  Cash.       Mdse. 

5989  50  6403  75    7530  Bro't  forward,      .        .        .         13082  40  5872  60    918  25 

11 
91        3    Bills  Receirable,  No.  1,  To  S.  Gaynor  to  close,        1         91 
— . //  

1  Sundries  To  Bills  Payable, 

200        2    Wm.  Hay  for  No.  1 3       200  | 

504        2    T.  P.  Cope  &  Sons  for  No.  2         .        .        .        .3       604 
//         

20  3    Jameg  Day  To  E.  Pryor 3         20 

20.  

704        3    1  Bills  Payable  To  Sundries, 

To  City  Bank,  No.  1,  $200,  and  No.  2,  $504,      4       703  65 
"   Interest  acct .4  35 

i  " 

I  Sundries  To  Mdse 

45         3    Edward  Pryor. 

397        1    S.  Gaynor. 

—  n        — 

874  Cash  To  Mdse 

-. n 

75  Mdse.  To  A.  Stuart  A  Co 2         75 

// 

1000         3    Bills  Receivable,  No.  2,  To  Sundries, 

To  Cash  ........ 

"   Interest  acct 4         20  50 

===.     80. 

Sundries  To  Cash 

25  50    5    Commission  Sales. 
60         1    p.  Duff. 

26  1    Wm.  Gordon. 
15         1     Carter. 

750        4    City  Bank. 

., W  

498  Cash  To  Sundries, 

To  Commission  Sales *>       360 

"   Mdse 

25156.75*  25156.75 

-.  -    -'-^= May  1,  -.... 

400        4    City  Bank  to  James  Carter 1       400 

n         

829  Mdse.  To  Sundries, 

To  E.  Pryor 3         64 

"   S.  Gaynor 1       265 

If  

Sundries  To  Mdse 

37         1    P.  Duff. 
284  50   3    Bills  Receivable,  No.  3. 

21  50    1    W.  Gordon. 
10  25    1    James  Carter. 

6  50    5    Robert  Banks. 

II 

496  50   3    Bills  Receivable,  No.  4,  To  R.  Butler  to  close  acct.    5       496  50 

12622  75  Amounts  forwarded, 16282  40 

7775  75  Cash, 7727  60 

6343  50  Merchandise 2732 

26742  'Proof 26742 


979  50 


875  50 


138 


Drs. 

Mdse.    Cash. 
6343  60  7775  75  12622  75 
i       291 
210 


May  1,  1867. 


Bro't  forward, 
II 


2300 


30 
60 
12 
10 
6 

28 
82 

91 

2000 

679 


484  50 


359  76 


I 


10 
40 


2  A.  Stuart  &  Co.  To  B.  Payable  No.  3  to  close  acct. 

—        II  . 

Cash  To  Sundries, 

To  S.  Gaynor 

"   Mdse.  received  for  Sales   .        .        .        . 

II        

Sundries  To  Cash 

6     R.  Banks. 

4    Expense  account. 

3  James  Day. 
1  W.  Gordon. 
1     P.  Duff. 

10. 

3  1  James  Day's  old  acct.  Dr.  to  his  new  acct. 

II 

1  2  Samuel  Gaynor's  new  acct.  Dr.  to  his  old  acct. 

13. 

4  City  Bank  To  Bills  Receivable  No.  1.  . 

23. 

2  3  William  Hay  To  City  Bank 

II 
Mdse.  To  T.  P.  Cope  &  Sons        .        .        .        . 

// 

2  T.  P.  Cope  &  Sons  To  Sundries, 

To  Mdse 

"  Commission 

// 
Cash  To  Sundries, 

To  Bills  Receivable  No.  3       . 

"   Duff  <fc  Gordon 

"   Mdse 

H         

Sundries  To  Cash 

3  James  Day. 

1    Wm.  Gordon. 

31. 


131 


1.  Each  note  being  posted  separately,  it  becomes  neces- 

sary to  particularize  them  by  nnmber  on  the  Jour- 
nal*— See  Bill  acct.,  p.  167. 

2.  Compare  the  total  footings  here  with  those  of  the  Day 

Book,  p.  152. 

*  These  figures  are  given  to  assist  the  learner  in 
making  out  the  trial  sheet — p.  172. 


158 


4337  35   4    4  City  Bank  new  acct.  To  old  acct. 

// 
Cash  To  Sundries, 

To  Mdse 

"   S.  Gavnor .        .         .        . 
"   Duff  &  Gordon  . 

u         

Sundries  To  Cash .        .        .        . 

3  6  E.  Pryor  (in  loan). 

4  Profit  <fe  Loss. 

5  Robert  Banks. 
1    W.  Gordon. 
4    City  Bank. 

'        Amounts  forwarded,       . 

v>3.Sll^  •  •  •  •  • 

Merchandise    .         •        •        . 


2UU 
20 

10 

5 

460 

•0883  10 

8601  25 

8643  50 

38127  85 


Proof 


1.  Hero  you  first  post  the  debit  and  balance  Day's  ac- 

count ;  then  post  the  credit  in  the  new  account. 

2.  Here  you  must  first  post  the  credit  and  balance  Gay- 

nor's acct. ;  then  post  the  debit  in  the  new  acct. 

3.  Hay  is  made  Dr.  to  the  Bank  for  the  check ;  no  entry 

is  required  in  the  Cash  Book. 

4.  You  must  now  also  balance  your  Check  Book. — See  p. 

146. 
6.  See  Note  1,  p.  133. 


159 


Cks. 

Cash. 

16282  40  7727  60  2732 
291 


60 


3 
1 


4 
2 


28 

82 

91 

2000 
2300 


6 


27 


2S4  50 
2U 


4     4337  35 


1 
6 


20 
26 


25838  26 
8591  60 
3698 

38127  86 


100 


li: 


640 


12 


180 


60 


80 


686 


Drs. 


May  31,  1867. 


Cns. 


Mdso.        Cash  ||  ^ 

seiTsO  8601  25  20883  U      1 


tA 


Bro't  forward, 
It 


Sundries  To  Mdse. 
20         6    1  W.  Evans  (S.  D.  acct.). 
182         6    James  Reed  (S.  D.  acct). 
18         6,   Joel  Post  (S.  D.  acct.). 


577  50    5    Robert  Butler  To  Sundries, 
To  Commission  Sales 
I  "  Mdse. 


Cash. 


Mdse. 


25838  2^  8591  6(i  369{ 

m 


500 
200 

400 


Sundries  To  City  Bank 
2    T.  P.  Cope  &  Sons. 
2    Wm.  Hay. 


// 


'  i 


\^ 


180 
1116 


4    "City  Bank  To  James  Carter . 

^^^^-^^-=     June  4. 

Mdse.  To  Commission  Sales. 


14868.60 


291 

1 

l' 

182 

6 

2ud 

4 

1 

Mdse.  To  Sundries, 
To  City  Bank 


"  Interest 4 


576 


7oa 


400 


18U 


4     1060  2C 
55  80 


BiUs  Payable  No.  3,  To  City  Bank 
ff       


James  Reed  To  Sundry  Drs.  acct. 
u       


City  Bank  To  E.  Pryor  for  Loan  of  31st  ultimo, 


4  291 
6  182 
3       200 


96 

60 

60 

630 


6; 

2 

6 
3i 


Sundries  To  Mdse., 

James  Reed. 

Wm.  Hay. 

Robert  Parker  (S.  D.  acct.). 

Bills  Receivable,  No.  5. 


1318 


5 
100 

748 

1221 


26373  60 
9919  25 
9939  50 

46232  33 


// 

Cash  To  Sundries, 

To  Joel  Post  in  full 
"  James  Reed 
"  Commission  Sales 


6  18 
6  100 
5     1200 


r/ 


Sundries  To  Cash . 
James  Day. 
City  Bank. 
Commission  Sales. 


853 


1:, 


T.  P.  Cope  &  Sons  To  Sundries  to  close  acct. 
To  City  Bank . 
"   Bills  Payable,  No.  4 

Amounts  forwarded 
Cash 
Merchandise   . 

2  Proof      . 


1.  These  letters  indicate  Scndrt  Debtoks  accoimt. — See 

p.  170.  We  place  these  marks  here  as  a  guide  to 
learners,  but  no  such  marks  are  required  in  busi- 
ness, because  the  book-keeper  determines  for  him- 
self, when  he  is  posting,  whether  he  will  open  an 
account  for  the  iudividual  or  place  his  name  with 
the  amount  on  the  Sundry  Drs.  account. 

2.  See  Day  Book,  footing  p.  154. 


4. 
3 


1000 
221 


32022  25 
9444  60 
4765  60 

46232  35 


60 


160 


Drs. 

Mdse.   Cash.        j  j 

9939  50  9919  25  26373  60 

I 
240 


-1 


L028 


June  10,  1867. 


Bro't  forward. 


lOf 

18£ 


5 
3 


Mdse.  To  Sundries, 

To  Wm.  Hay 

"   1  Thomas  Freeman  (S.  C.  acct.) 
// 

Sundries  To  Mdse 

R.  Banks. 
E.  Pryor. 


491  95   4 
4  55   4 


Sundries  To  Bills  Receivable  No.  4 

City  Bank. 

Interest. 


1681  25 


1992 


Cash  To  Sundries, 
To  R.  Butler  . 
"  Commission  Sales 
"  DuflF  &  Gordon  . 

ff 

Commission  Sales  To  Sundries, 
To  Commission 
"  Cash  .... 


100 
13 


3 


Sundries  To  Cash. 
City  Bank. 
James  Day  in  full. 


1/ 


20. 


Mdse.  To  Sundries, 

To  James  Haven  (S.  C.  acct.) 
"   Bills  Payable  No.  5  . 


ii  1250        4    City  Bank  To  Mdse. 


isoj 


// 


Cash  To  Profit  &  Loss  . 


// 


90 

28 


345 


5 
6 


Sundries  To  Cash . 
Robert  Banks. 
James  Haven  in  full. 

30. 

Expense  account  To  R.  Banks 

13911.75 


Crs. 


Cash.        Hdm. 


2 
6 


32022  25  9444  60  4765  5(1 


168 

72 


291 


3   496  50 


100 
1540 
4125 


6   137 


l65o 
113 


28 
1000 


1250 


150 


lis 


345 


13911.75 


30979  10 
11750  50  2 
11207  50  2 

53937  10 


Total  Amounts  to  date, 36100 

;;     Ip^^^     ^. "2  11530  60 

Merchandise 2  6306  50 

'  P^OOf 53937   jy 


1.  This  indicates  Sundry  Creditors'  account.— See  Note 

1,  last  page,  and  p.  170. 

2.  This  makes  our  first  Journal  period.    From  here  the 

total  amounts  of  the  cash  and  merchandise  debits 
aud  credits  are  posted  into  the  Ledger.— See  p.  166. 

3.  Compare  this  amount  with  our  Day  Book  footing,  p. 

155,  also  with  the  trial  sheet,  p.  171. 


II 


•* 


i 


161 


CONCLUDING  REMARKS  UPON  THE  JOURNAL. 

1.  The  mode  of  journalizing  the  last  Day  Book,  it  is  presumed,  will  be  sufl&ciently  under- 
stood by  the  examples.  We  shall  now  endeavor  to  explain  verbally  the  manner  of  com- 
posing the  Journal  from  the  Auxiliaries,  without  passing  the  entries  through  the  Day  Booi, 
as  we  have  here  done.  When  the  nature  of  the  business  will  admit  of  this,  it  will  consider- 
ably lessen  the  amount  of  writing. 

2.  It  is  to  be  observed,  however,  that  in  a  business  which  frequently  creates  compound 
entries,  journalizing  in  this  way  will  meet  with  many  awkward  impediments ;  for  instance, 
the  first  Day  Book  entry  of  this  set.  cannot  be  explicitly  stated  without  embracing  the  first 
merchandise  entry  on  the  Invoice  Book,  and  the  first  debit  entry  on  the  Cash  Book.  The 
only  way  of  getting  over  this  obstacle  in  journalizing  the  auxiliaries,  is  to  let  such  entries 
pass  into  the  Day  Book  and  begin  a  new  period — that  is,  commence  immediately  after  these 
entries  bringing  forward  and  journalizing.    We  will  now  endeavor  to  explain  the  process  of 

JOURNALIZING  FROM  THE   AUXILIARIES. 

3.  When  this  is  done,  the  Day  Book  will  contain  a  much  smaller  number  of  entries ;  for, 
if  you  adopt  this  method  of  journalizing,  you  must  keep  the  entries  belonging  to  each  auxi- 
liary upon  itself.  They  must  not  appear  upon  the  Day  Book  (except  in  such  cases  as  above 
stated) ;  if  they  do,  they  will  certainly  lead  to  confusion. 

4.  Although  it  does  not  matter  which  book  we  journalize  first,  yet  it  is  better  to  adopt 
some  regular  course  :  say  we  begin  with  the  Day  Book,  and  journalize  all  the  entries  under 
the  present  date.  Then  make  Cash  Dr.  to  Sundries  for  all  entries  on  the  Dr.  side  of  the 
Cash  Book,  and  Sundries  Dr.  to  Cash  for  all  entries  on  the  Cr.  side.  Merchandise  is  Dr. 
to  Sundries  for  all  entries  under  the  same  date  on  the  Invoice  Book ;  and  Sundries  Dr.  to 
Merchandise  for  all  entries  on  the  Sales  Book.  Mark  the  entries  oflf  the  Cash  Book  as 
directed  Note  7,  p.  53,  and  off"  the  Sales  and  Invoice  Book,  as  directed  for  the  Day  Book, 
Note  7,  p.  28.  Bills  Receivable,  Bills  Payable,  and  Commission  Sales  Book,  are  each  jour- 
nalized in  their  turn  in  the  same  way,  and  marked  off  as  directed  with  the  Cash  Book. 

5.  You  next  take  each  book  in  the  same  order,  and  journalize  the  following  day's  busi- 
ness as  before ;  and  so  on,  until  you  have  all  brought  up ;  observing  that  the  footings  of  the 
Invoice,  Sales  and  Cash  Book,  agree  with  their  representatives  in  the  Journal  as  you 
proceed. 

6.  This  process  of  journalizing  does  not  disturb  our  mode  of  proof.  The  footing  of  the 
Auxiliaries,  and  that  of  the  Day  Book,  have  only  to  be  added  together  to  agree  with  the 
Journal. 

7.  Some  journalize  a  whole  month  of  the  Cash  Book  in  one  entry,  and  then  do  the  same 
with  the  Sales  Book,  preserving  the  order  of  the  dates  in  the  margin  of  the  Journal ;  but 
this  method  produces  such  a  confusion  of  dates  in  the  Ledger,  that  it  can  never  be  recom- 
mended. 

We  have  now  to  explain  the  second  mode  of  abbreviation,  viz. : 

POSTING  ALL  THE  PRIMARY  BOOKS  DIRECT  TO  THE  LEDGER. 

8.  When  the  nature  of  the  business  admits  of  it,  this  plan  of  posting  efl'ects  the  greatest 
reduction  in  writing  that  perhaps  can  be  made  in  Book-keeping.  But  it  is  subjected  to  the 
same  impediments  from  compound  entries,  that  we  have  just  noticed.  Note  2,  and  which  can 
only  be  got  over  in  the  same  way.  We  have  already  explained  the  manner  of  posting  the 
Invoice  and  Sales  Book,  p.  139  and  142.  When  it  is  intended  to  post  the  Cash  Book  in 
this  manner,  a  folio  column  will  be  required  either  next  the  money  columns  or  next  the 
date  columns,  in  which  you  will  insert  the  folio  of  the  Ledger,  as  you  proceed  with  the  post- 
ing. The  footings  of  these  three  books  are  summarily  posted  at  the  end  of  the  month  or 
the  end  of  the  quarter  as  from  the  Journal. 

9.  The  Bill  Books  and  the  Commission  Sales  Book,  may  be  posted,  both  sides,  by  the 
same  process ;  but  I  would  recommend  their  passing  into  the  Day  Book. 

10.  The  Day  Book  should  have  the  entries  all  made  in  Journal  form,  when  it  is  intended 
to  post  it  in  this  way.     I  am  now  alluding  to  the  common  form  of  Day  Book. 

11.  Our  proof  is  obtained  by  adding  together  the  footings  of  the  Cash,  Invoice,  Sales,  iiud 
Day  Book.     The  amount  must  agree  with  the  amount  of  the  Ledger  trial,  as  on  p,  171. 

162 


t 


ON  MONTHLY  JOURNALIZING. 

1.  The  object  of  this  method  is  to  condense,  not  only  the  cash  and  merchandise,  but  all 
the  accounts  in  the  Ledger,  into  one  line  each  in  the  month.  Many  persons  are  stron-ly 
prejudiced  in  favor  of  this  plan  of  journalizing,  on  account  of  the  abridgment  it  makes^in 
the  accounts  in  the  Ledger :  in  some  kinds  of  business  it  will  no  doubt  work  tolerably  well ; 
but  where  the  book-keeper  is  frequently  called  upon  to  make  up  statements  of  accounts,  and 
to  effect  settlements,  in  a  business  of  any  magnitude,  there  must  ever  be  this  insuperable 
objection  to  it:— the  books  can  never  be  kept  up.  You  cannot  commence  the  joumalizintr 
ot  the  month's  business  until  the  month  has  expired,  and  before  you  can  journalize  and  post 
this  month,  a  considerable  part  of  the  next  must  have  elapsed  j  in  a  word,  the  nature  of  the 
process  will  never  permit  you  to  get  your  books  up  to  the  date  of  settlement.  Even  the 
strongest  advocates  of  this  method  admit  the  force  of  this  objection,  and  can  offer  no  advan- 
tage to  counterbalance  it,  but  the  abridgment  of  the  accounts  in  the  Ledger.  I  must,  how- 
ever, name  other  objections  to  the  process,  viz.  the  chances  of  errors  and  omissions  in  jour- 
nalizing; the  risk  of  making  errors  in  drawing  off  accounts  current,  and  making  settlements 
without  having  your  books  posted ;  the  correctness  of  which  can  only  be  determined  when 
the  accounts  are  posted ;  then,  the  time  required  in  searching  up  the  Day  Book  entries  for 
the  Journal,  is  certainly  at  least  equal  to  the  time  required  for  writing  them.  Consequently, 
m  less  time  than  any  person  could  possibly  journalize  a  month's  business  in  this  way,  by 
our  plan  of  posting  our  first  Day  Book,  we  should  have  it  all  posted  up  into  the  Ledger. 
Ihe  author  once  kept  a  set  of  books  upon  this  plan;  these  remarks  are,  therefore,  dictated 
by  experience. 

2    Some  directions  will  now  be  required  on  the 

DETECTION  AND  CORRECTION  OF  ERRORS. 

n  ^l  ^^^.*"^^  ?o®s  ^0*  ^g^ee  with  the  footings  of  the  Journal,  compare  the  footings  of  your 
Cash  Debits  and  Credits  with  those  in  that  book :  also,  those  of  the  Merchandise  account ; 
then  the  Bill  Books  and  the  Bill  accounts.  Get  a  trial  from  the  Commission  Sales  Book  to 
compare  with  its  representative  in  the  Ledger,  compare  the  footings  of  the  Check  Book 
with  the  Bank  account;  and  if  you  have  posted  direct  from  the  Invoice,  Sales  and  Cash 
Book,  these  books  must  be  compared  with  their  representatives  in  the  Ledger.  If  all  these 
books  and  the  Ledger  agree,  the  error  must  be  in  some  of  the  personal  accounts  or  some 
account  not  represented  by  any  of  the  above  books,  and  must  be,  between  the  Journal  and 
the  Ledger,  m  the  Ledger  or  in  the  trial  itself.  Taking  the  Day  Book  and  Journal  as  the 
best  authority,  we  ascertain  the  difference  between  them  and  the  Ledger  trial.  Sometimes 
.  we  find  one  side  agreeing  with  the  Journal :  in  this  case  our  attention  is  confined  to  one 
side  ot  the  Ledger  only.  In  all  cases  it  is  proper  to  know  the  amount  of  error ;  for  if  there 
be  but  one,  knowing  the  amount  of  it,  sometimes  readily  leads  to  its  discovery.  When  the 
error  is  found,  if  it  cannot  be  corrected  as  directed,  page  98,  the  correcting  entry  must 
originate  upon  the  Day  Book  or  some  other  primary  Book. 

.  ^'  T^^T/^  ^^^^^  ^^^^^^  ^°  *^®  Journal  by  extending  into  the  wrong  column,  if  you  have 
tooted  and  forwarded  the  amounts  before  discovering  it,  at  your  next  footing  add  the  amount 
to  the  colunan  to  which  it  belongs,  and  subtract  it  from  that  into  which  it  w^  erroneously 
extended. — Read  Note  2,  p.  98.  '' 

Errors  in  any  of  the  primary  books  are  corrected  as.  directed,  Notes  10  and  11,  page  98, 
and  Note  2,  p.  125.  >  i'  a      "> 

4.  We  will  now  endeavor  to  give  our  readers  some  useful  directions 

IN  RULING  BOOKS  OF  ACCOUNTS. 

In  ordering  books,  always  provide  the  binder  with  an  exact  pattern  of  the  size  of  paper 
and  ruling.  Never  choose  books  of  any  kind  that  will  keep  you  constantly  cramped  for 
space  to  write  upon.     Many  persons  use  Day  Books  and  Cash  Books  made  of  cap  paper 

folded  long,    and  are  forever  trying  to  cram  their  entries  upon  a  line,  very  often  leavin 
them  half  finished  in  the  attempt.  i^  7       j 

In  the  next  place,  never  throw  away  unnecessary  space  in  maroins  and  date  columns 

163 


i 


'O 


[i 


I 


Five-tenths  of  an  inch  is  ample  space  for  the  month,  and  three-tenths  for  the  date  and  cent 
columns.  The  width  of  the  dollar  column  depends  on  the  magnitude  of  the  business ;  but 
the  figures  in  this  column  ought  not  to  be  crowded.  Five-tenths  of  an  inch  is  a  good  space 
for  four  figures,  and  six  figures  ought  to  have  seven-tenths.  Three-tenths  faint  ruling  is  a 
good  size  for  common  Day  Books,  Journals,  &c. ;  but  Ledgers  and  the  six-column  Day  Book 
or  Journal  may  be  somewhat  narrower. 

Mechanics  and  retailers,  proposing  to  post  their  Ledgers  as  suggested.  Note  2,  p.  129,  will 
find  it  useful  to  have  the  debit  writing  space,  ruled  one-fourth  or  one-third  wider  than  the 
credit  space.  In  small  Ledgers  it  is  better  to  bind  the  index  in  the  book ;  in  large  ones  it 
is  more  convenient  to  have  it  bound  separate.  In  either  case,  direct  the  binder  to  "  throw 
over"  the  first  leaf  of  the  index,  and  commence  lettering  on  the  third  page.  This  enables 
the  book-keeper  to  place  the  upper  letter  upon  each  leaf  on  the  left  page,  and  the  lower  one 
on  the  right,  thus  giving  each  letter  a  full  page  throughout  the  index. 

In  the  six-column  Day  Book  or  Journal,  it  will  be  well  to  have  the  dividing  lines  between 
the  cash  and  sundries  column,  on  both  sides,  black  or  some  dark  color ;  it  will  also  be  useful 
to  order  a  red  footing  line  across  the  bottom  of  the  page,  the  fourth  line  from  the  bottom. 

Before  concluding  this  subject,  I  will  take  leave  to  oflfer  a  suggestion  upon  the  con- 
struction of 

BOOK-CASES. 

In  vaults  and  safes,  the  book-cases  are  almost  universally  constructed  for  setting  all  the 
books  on  end,  leaving  the  whole  weight  of  the  paper,  by  this  means,  hanging  and  straining 
upon  the  binding,  and  not  unfrequently  breaking  it.  It  will  take  no  more  space  to  contain 
the  books  upon  horizontal  fixtures  than  in  perpendicular  ones,  and  it  is  obvious  that  all 
large  books  are  less  liable  to  injury  in  the  one  position  than  the  other. 


INDEX  TO  LEDGER  B. 


Bills  Receivable 
Bills  Payable 
Banks,  Robert  . 
Butler,  Robert 
Carter,  Janies  . 
Cash     . 

Cope  &  Sons,  T.  I 
City  Bank     . 
Commission  Sales 
Commission  . 
Duff,  P.    . 
Day,  James  . 
Duff  &  Gordon 
Expense 
Evans,  W. 
Freeman,  Thomas 
Gordon,  Wm.    . 
Gaynor,  Samuel 
Hay,  William    . 
Haven,  James 
Interest    . 


A. 

» 

3 
.    3 

5 
.    5 

1 
.    2 

2 
.    4 

5 
.    6 

1 
.        .    3 

y  .1' 

6 
.    6 

1 
.    1 

2 
.    6 

4 

Merchandise 


Pryor,  Edward 
Profit  &  Loss 
Post,  Joel 
Parker,  Robert 

Reed,  James     . 
Stuart,  A.,  &  Co. 
Sundry  Drs. 
Sundry  Crs. 


J. 
K. 
L. 

N. 
0. 


Q. 


3 
4 
6 
6 


6.6 
.    2 

6 
.    G 


T. 
U. 
V. 
W. 
X. 
\. 

z. 


164 


Pf. 

1867.    I       I 

Apr.  10  Cash, 

30       // 
May     1  Mdse. 

Cash, 
30  -^  ■ 


P. 


June 


nt. 


Balance. 


fol. 


1 
2 

3 

2 


30 

60 

37 

5 

421 


553  91 


DUFF. 

1867.    I       ! 

Apr.  I  1  Cash, 

June  30  Duff  &  Gordon, 


fol. 


1 

5 


Cr.      i 

500 
53  91 


553.M 

132. 

421.91 


553  91 


June|80  Balance  bro't  down, 


421  91 

Read  Notes  2  and  3,  p.  149. 

*'  '^'"tr^H^f  ?^  *'''°  following  accounts  are  the  partners'  private  accounts;  they  are  debited  for  all  sums  withdrawn  and 
credited  for  any  sums  paid  in  over  the  capital.  The  credits  of  June  30  at  this  and  Gordon's  account  are  their  diridendi 
01  aeots  collected  for  the  old  firm. 


W. 


GORDON. 


1867. 

Apr.  30  Cash, 

May     1   Mdse. 

Cash, 

23 


2 
3 


11 


// 


101.50 
32.34 

69.16 


June  80  balance  bro't  down. 


I     i 


25  ' 

2150 

10 

40  I 

5  ! 


.  1867.     I       ! 

June  30  Duff  &  Gordon,     fol.  5 


32  34 


10150 


69  16 


-uaicuiuf. 


101  50 


JAMES 


CARTER. 


1887. 


Apr     1  J.  Carter's  Stock  acct.,  1 
SO  Cash,  2 

May     1  Mdse., 


k 


988.75 
800. 

188.75 


Balance, 


ML        4 

fol.    . 


400 
400 

988  75 


June  30  Balance  bro't  down. 

^'  ^^"sttk  accouVtrrnt.'"''"' ''  ^^'""^  *^''  ^'^*""'  ""'^  '^'^"'''*  *°  ^"  '*P^**^  ^^""  *^«  ^^'^'^  ^^^^  opened-Refer  to  hi* 

2.  The  two  credits  are  payments  on  account  of  this  deficiency.    If  interest  is  to  be  charged  a  Dav  Book  entrv  will  i«.  m«H-    r 

It,  and  It  mil  be  brought  to  this  account,  not  to  his  stock  account.  ^nargea,  a  i^ay  iJook  entry  will  be  made  «f 


SAMUEL 


GAYNOR 


1867 


Apr.    1  Amtf  Ledger  A,  fol.  3x      91 


^0  Mdse 


May  lO  Balance  on  settlement, 


June  30  Balance  bro't  down. 


397 


488 


82 


1887. 


82 


62 


^pr.  10  Bills  Keceivable, 

^ay     1  Mdse., 

J     Cash,  8 

10  Balance  debit  in  n/a., 


2x      91 

265 

50 

48S 


Jun 


31  Cash, 


c 


30 


Balance, 


20 

82 


Refer  to  Note  2,  Warden  &  Bell's  account,  p.  105 

1.  Wliere  a  settled  account  is  comprised  in  a  single  line,  iMs  sufficient  to  mark  the  entries  on  each  side  a.  above  and  omit  them 

H.  .n^'^'J  account  current.    But  the  author  has  witnessed  so  much  confusion  and  trouble  in  acJounJs  frJS.  iSr-  tr« 

rir^n^i^VV^' *"'\V*  settlement,  that  he  again  requests  the  student's  attentio^to  Note  1  wS"  Tcomi     p 

Ij.  Note,  p.  20,  Notes  o  and  6,  p.  23,  Note  4,  p.  70,  and  Note  1,  Carter's  account,  p.  105.  i.  "  ooa  s  account,  p. 

165 


I, 


»   1ft. 


CASH. 


Cr. 


18W.   '       ' 

June  30  Sundries  to  date,  n^so^ 

1                                                        U590.W 

5 

11750  50 
11750  pO 

1867.  ' 

June 

1 
30 

Sundries  to  date, 
Balance,                    f. 

5 

2 

11530 
219 

11750 

60 

90 

50 

Jun   30  Balance  bro't  down. 

219 

— 1 
90 

MERCHANDISE 


ACCOUNT. 


1867. 


June  30  Sundries  to  date, 
Private  Ledger, 


"  I       'II  18OT.   I       f 

5  11207  50   June  30  Sundries  to  date, 
6306  50  Private  Ledger, 

17514  ~ 


f. 


5 

2 


6306  50 
11207150 


1.  Post  the  ne-w  bnsiness  to  thia  account  as  before.    When  closing  the  Ledger,  transfer  again  with  a  double  balance  as  above. 


T.  P. 


(Philadelphia) 


COPE  &  SONS. 


1867    '       ' 

Apr.  *10 '  Bills  Payable, 
May  23  Sundries, 

31   City  Bank, 
June    4   Sundries, 


2x    504 

3  579 

4  500 
1221 


2804 


1887. 


Apr.  I  1' Sundries fLedg.A,f.  Ix    504 
May  23  Mdse.,  3     2300 


2804 


I.  This  account  affords  another  illustration  of  what  is  alluded  to  in  Note  1,  Gajrnor's  account,  p.  165.    In  business  this  mark 
is  made  upon  the  doable  red  line,  and  bo  rauall  aa  not  to  disfigure  the  account. 


WILLIAM 


(Boston) 


Apr.  10  Bills  Payable, 
May  23  City  Bank, 

31      //         M 
June    4  Mdse., 

iSUj  liiiiiince, 


M60. 


loi. 


2x    200 

3  2000 

4  200 
60 

402 


2 


40 
2862  40 


1887. 


fl 


Apr.    1 1  Sundries  Ledg.  A,     f.  1  x    200 1 

10  Mdse.,  I     12494  40 

June  10      //  S*^   5       168 


402.40 


June  30  Balance  bro't  down. 


2862  40 


402  40 


STUART  &  CO. 


i88r. 
May   1    Bills  Payable, 


201 


291 


1867. 

Apr.  10  Mdse., 
20       v 


1 

2 

'    216 
75 

291 

166 


Or. 


JAMES 


(75  Tenth  Street) 


DAY. 


1887. 

Apr.    1  Cash, 

10  E.  Pryor, 

May     1  Cash, 

10  New  acct., 


May  23  Cash, 
June    4      « 
10 


// 


!'  1867. 

Apr.    1   Sundries,  Ledg.  A,   f.   3 


Cr.      8 

68 


May  10   Old  acct., 


68 


28 


28 


1.  The  last  debit  entry  before,  the  first  balance  above,  and  the  first  credit  after  it,  are  in  one  Jounial  entry,  the  first  one  posted 
before  the  account  is  balanced,  and  the  last  one  after  it.— Note  1,  p.  159,  and  Note  1,  p.  153. 


EDWARD 


(25  John  Street) 


PRYOR. 


1867. 


Apr.    1  Amt.  Ledg.  A, 

10  Mdse., 

20       // 

May  31  Cash  in  Loan, 

June  10  Mdse.. 


June  30   Bal.  bro't  down, 


f. 


3 
1 
2 


446. 
284. 

I«t. 


2 
16 

45 
Sii    200 

5,.    183 

|j    446 
162 


1867. 

lApr.  10  James  Day,  2 

I  May     1   Mdse., 

June    4  City   Bank,  Loan  of 

31st  ult.,         284.     4  X    200 


20 
64 


30 


Balancv 


446 


1.  The  above  loan  on  May  Slst,  is  passed  through  account  as  directed  at  Pryor'a  acct.,  p.  133. 

___     BILLS  RECEIVABLE. 


1867. 


Apr.  10  S.  Gaynor,        No.  1,    2 

20   Sundries, 
May     1   Mdse., 

R.  Butler, 
June    4  Mdse., 


91 


2,    2     1000 


2502.        K 
872.        ^'j 

1630. 


June  30  Bro't  down,      No.  2, 

I     i    »  f  5, 


284  50 


1867. 


May  13   City  Bank,        No.  1,    3 

•'  c:.i  ,„d  dowij,  li„ 

May  23   Cash,  3,    3 

496  50    June  10  Sundries 

630 


,  87S.         4,      5 


2502 

1000 
630 


91 

284  50 
496  50 

2502 


BILLS 


PAYABLE. 


1867. 

Apr.  20   Sundries,  I 

// 
.Tune    4   City  Bank,     995. 


1, 

I: 

2 

4 

200 
504 
291 

5j 

2216 

1 _  „,„ 

1867. 


|Apr.  10   W.  Hay, 

Cope  &  Sons, 

May    1   Stuart  &  Co., 

June '  4  Cope  &  Sons, 

20  Mdse., 


No.  1, 

2, 
3. 

4, 
5, 


2216. 
9»5. 

1221. 


2 

200 

504 

3 

291 

4 

221 

5 

1000 

2216 

June  30  Bro't  down,      No.  4, 

\         \         If       It  5, 


221 
1000 


1  Referring  our  readers  to  the  copious  directions  for  the  management  of  these  accounts,  pp.  33,  34,  52, 103,  and  104,  we  have 
now  only  to  explain  the  peculiarity  in  the  mode  of  posting  adopted  above.  The  notes  are  all  posted  separately,  accom- 
panied with  their  respective  nimibers,  and  the  counter-post,  with  its  number,  must  be  always  kept  upon  the  same  line 
with  the  first  entry,  leaving  blanks  opposite  all  notes  in  hand  in  the  Bills  Receivable  account,  and  opposite  all  unpaid 
notes  in  the  Bills  Payable  account. 

2.  In  closing,  the  blanks  must  be  all  filled  in  red,  and  the  same  notes,  with  their  numbers,  recapitulated  in  new  account.  Thia 
method  of  posting  these  accounts  will  contribute  much  to  theLr  correctness,  and,  in  some  cases,  renders  the  Bill  Book 
unnecessary. 

167 


I 


I 


' 


V! 


4     Br. 


CITY 


BANK. 


Cr. 


1867. 

Apr.    1  Cash, 

30      // 
May     1  J.  Carter, 

13  Bills  Receivable, 


31  Bal.  bro't  down, 
I      Cash, 

James  Carter, 
June    4  E.  Pryor, 

Cash," 
10  Bills  Receivable, 

Cash,  ' 
20  Mdse.,    - 


1867. 

Apr.  20  Bills  Payable, 
May  23  Wm.  Hay, 

'1     l^il-iifr^  to.  r\  'fi., 


2 
3 


3 
4 


4337  85    May  31  Sundries, 
450         June  1 4  Mdse., 

iBills  Payable, 


7329.30 
3051.20 


427&10 


June  80  Bal.  bro't  down. 


400 
200 
100 
49195 
100 
1250 

7329  30 
4278  10 


Cope  &  Sons, 

30.  i^;u:i;jcj, 


3051.20 


703  65 
2000 


7041 


700 
1060  20 

291 
1000 


7329  $0 


See  Note  2,  p.  157,  and  Note  1,  Day's  account,  p.  167. 

Every  house  doing  a  business  of  any  magnitude,  should  keep  a  Bank  account.    It  simplifies  and  shortens  the  Cash  account, 
and  diminishes  the  trouble  and  chances  of  error  iu  making  payments. 


PROFIT 


h, 


LOSS. 


1M7. 

May  31   Cash,  3 

June  30   Pr.  &  Loss,  Pr.  Ledg.  f.  2 


20 
130 

160^ 


1867.  ' 

June  20   Cash. 


5       150 
150~ 


1.  This  account  is  continued  in  this  Ledger  until  the  time  of  closing,  when  its  balance  is  transfen-ed  to  the  Profit  k  Loss  in 
the  Private  Ledger. — See  the  above  balance  in  Profit  &  Loss  account,  p.  174. 


EXPENSE 


ACCOUNT. 


Apr.     1 

Cash, 

1 

3 

May     1 

// 

3 

60 

June  30 

R.  Banks, 

40&     5 

345 

1867. 


June  30  Private  Ledger,         f.  2       408 


408 


408 


INTEREST 


ACCOUNT, 


1867.  f       f!  1867.     '  ' 

June  10  Bills  Receivable,  6  4  55  Apr.  20  Bills  Payable, 

30  Pr.&Loss  Pr.Ledg.  f.  2         72  10  i  Bills  Receivable, 

i  June    4  Mdse.,  i«.» 

76  65  .  I 


2 
4 


^5 

20  50 
55  80 

76  65 


1.  This,  and  the  Expense  account,  are  both  closed  into  the  Profit  k  Loss  account  iu  the  Private  Ledger,  p.  174. 

163 


I 


Dr. 

1867. 

Apr.  30  Cash, 
June    4      w 

10   Sundries, 


COMMISSION  SALES. 


Cr. 


I 


2 

4 

2765.50       5 


June  ^0  Bal.  bro't  down, 


1867. 

25  50    Apr.  30  Cash, 
748         May  81   Robert  Butler, 
1992         June    4  Mdse., 

Cash, 

i!  10  //  3866. 


6621  50 


2765  50    June  30  Bal.  bro't  down, 


2 

360 

( 

4 

576 

180 

1200 

V 

5 

1540 

6621  50 


3856 


See  Notes  1  to  4,  p.  143.  .    .      a  ■%     -a    %. 

1.  This  account  represents  all  our  commission  business.    All  the  accounts  are  kept  and  settled  on  the  Commission  Sales  Book. 

2.  We  have  closed  this  account  by  DmhU  Balance,  for  the  purpose  of  practically  exemplifying  that  operation,  though  this 

mode  of  balancing  -was  not  required  here,  or,  indeed  anywhere,  except  when  transferring  an  account  from  one  I,*Higer 
to  another,  which  you  wish  to  leave  closed  on  the  old  book,  and  to  re-open  on  the  new  one  with  the  whole  ai.iount  of 
each  side  brought  forward.  You  will  perceive  that  the  above  operation  will  effect  that  purpose.— See  Morri.s'  Sales, 
p.  107. 


ROBERT 


(Clerk) 


BANKS. 


1867. 

Apr.  10  Cash, 
May     1   Mdse., 
Cash, 
31      // 
June  10  Mdse., 
20  Cash, 
30  .,..,.„.,... 


20         June  30  Expense  acct.,     ^[^    5 

6  50 
30 


26i.50 


80  50 


ROBERT 


(Albany) 


BUTLER. 


1867.     i       ' 

Apr.  10  Mdse., 


May  31  Sundries, 


vrm.   \     i 
596  50    Apr.  10   Cash,  1 

May     1   Bills  Receivable,  2 

596  50  i     j 

^,,,J_jti      I  u 

577  50    June  10   Cash,  5 


577  50 


100 
496  50 

596  50 
100 

577  5m 


DUPP 


& 


GORDON. 


1867.     ! 

June  30 


P.  Duflf, 

jW.  Gordon 


fol.   1 


1867. 

53  91    May  23  Cash, 
32  34  31      // 

I      June  10      " 


86.25 


3 
5 


20 
25 
4125 


86  25 


86  25 


1.  This  account  is  credited  for  all  collections  made  of  Duff  &  Gordon's  old  debts,  and  if  any  thing  is  lost  upon  any  of  thf  nr- 
counts  from  which  they  credited  themselves  in  the  new  firm,  this  account  will  bo  debited  for  the  amount.  Of  the  aK.ve 
collections  they  make  a  dividend  in  the  same  proportion  as  ttiey  divided  the  gain  wlun  lii.  y  dosed  their  l>o.>ks.— St« 
Profit  &  Loss  account,  p.  134. 


169 


•     Br. 


SUNDRY 


DEBTORS. 


Cr. 


1867. 

May  31  W.  Evans, 
Jas.  Reed, 
Joel  Post, 

June    4  Robert  Parker, 


4 

20 

182 

18 

J80. 
300. 

60 

80. 

280 

vn, 

20 

; 

60 

1867. 

o  uuuoO 


T  -     >  ■»  1   ■- 


4  Jas.  Reed's  acct.,  4 

,|  Cash  of  Joel  Post,  aoo. 

!||  ':  .or,  car.  dow;. 


:'.0 
182 

18 

;<) 

280 


June  30  W.  Evans,  bro't  down 
,       R.  Parker,         ft 

i   ' 

1  In  every  business  there  are  frequently  small  sales  and  unsettled  balances  due  from  persons  with  whom  wo  expect  to  have 
no  farther  dealings.  The  simplest  and  easiest  way  to  keep  account  of  such  transactions  is  under  a  Sundry  Drs.  head. 
Enter  the  name,  sum,  date,  &c.,  as  above,  taking  care  to  index  each  individual's  name,  as  you  perceive  we  have  done— 

refer  to  the  index,  and  see.  ,        ,     ,  ^    i.    ,  *     -d 

2.  When  payment  is  made,  it  comes  through  the  books  as  far  as  the  Journal,  as  though  the  party  had  an  open  account.  Jiy 
the  index,  the  name  is  found  on  this  account,  post  it  like  Joel  Post's  entry,  4th  June,  above,  on  the  same  line  opposite  the 
debit,  and'it  settles  the  transaction.  ^  .   j.   .  j     ,      t.-  *u     * 

3  You  must  recollect,  however,  that  you  cannot  make  more  than  one  debit  and  one  credit  to  each  individual.  11  tbe  trans- 
actions exceed  this,  you  must  re-page  the  party's  name  in  the  index,  and  transfer,  through  the  Day  Book,  the  amount 
from  this  account  to  his  private  account,  aa  we  have  done  above  with  J.  Reed. 


SUNDRY 

CREDITORS. 

1867.                                                  - 

20   Cash  paid  J.  Haven,     5 

28 

'  1867. 

June  10 
20 

DueT.  Freeman,            6  ' 
It    Jas.  Haven,   ^£; 

7a.           1 

72 

28 

1 

100 

1 

i 

100 



1 

1 

June  30 

Due  T.  Freeman,  bro't 

down, 

1 

72 

1.  This  account  is  managed  in  all  respects  like  the  last  one,  except  that  the  entnes  first  appear  at  the  credit  side. 

2.  When  a  purchase  is  made  of  a  party  with  whom  you  have  not  an  account,  and  intend  to  pay  it  in  a  short  time,  let  the  trans- 

actions as  those  in  the  last  account,  come  through  the  books  as  far  as  the  Journal,  in  the  usual  way,  then  post  the 
name,  amount,  Ac,  to  this  account,  recollecting  to  index  the  name.  When  payment  is  made,  it  must  be  always  placed 
on  the  Dr.  side,  on  the  same  line  with  the  credit,  as  with  Haven's  entry  above.         .        „    ,  ,  j.   .    ^r, 

3.  These  tw(.  accounts  close  by  filling  up  the  vacant  spaces  in  red,  as  above,  recapitulating  all  the  names  and  amounts  in  the 

new  account. 


JAMES 


REED. 


1867. 

June  4 


Sundry  Drs.  acct 
Mdse., 


278. 
100. 


178. 


182 
96   _ 

1867. 

June    4 

30 

Cash, 

:ded  Li-t. 

4       100 

f.  :l       178 

278 

278 

11 "  " — 

1 

•      ll 

1  This  account  was  first  commenced  under  the  Sundry  Dks.  head,  but  finding  he  was  going  to  deal  farther  with  us,  we  re- 
indexed  his  name,  and  opened  a  private  account  with  him.  This  will  frequently  occur  in  business,  but,  as  the  name  la 
already  in  the  index,  the  trouble  is  trifling  compared  with  the  old-fashioned  plan  of  keeping  a  petty  Ledger  for  such 
accounts. 


COMMISSION 


1867. 

June  30  Profit  &  Loss, 


ACCOUNT. 


1867. 


f.  2       164         May  28   Cope  &  Sons, 

June  10   Commission  Sales,  i^ 

164 


3 
5 

1     ' 

1 
27 
137 

164 

170 


TEIAL  SHEET,  June  30,  1867 


P.  Duff  . 
W.  Gordon 
James  Carter 
S.  Gay  nor    . 


// 


Cash    . 

Merchandise    . 
T.  P.  Cope  &  Sons 
Wm.  Hay 
A.  Stuart  &  Co.    - 
James  Day 


// 


Edward  Pryor 
Bills  Receivable  . 
Bills  Payable  . 
City  Bank   . 

//    . 
Profit  &  Loss 
Expense  Account 
Interest  Account 
Commission  Sales 
Robert  Banks 
Robert  Butler 

// 
Duff  &  Gordon 
Sundry  Debtors 
Sundry  Creditors 
James  Reed 
Commission     . 
Private  Ledger 


Drs. 


Ors. 


fol    1 


2 


1.  By  comparing  these  footings  with  those  of  the  Day-Book  and  Journal,  and  finding 
them  to  ao-ree,  we  have  direct  and  indisputable  evidence  that  no  omissions  can  have  occurred 
either  in  journalizing  or  posting.  Whereas  the  common  Trial  Balance  affords  no  security 
against  any  errors  but  such  as  disturb  its  equilibrium.  And  it  is  well  known  that  omissions 
deeply  affecting  the  interest  of  the  Merchant  frequently  take  place  between  his  Sales  Book, 
or  his  Day-Book  and  his  Journal,  which  the  method  we  are  now  introducing  affords  the 
means,  and  the  only  means,  of  detecting  with  certainty. — Note  4,  p.  142. 

2.  There  are  so  many  obvious  advantages  in  taking  a  monthly  trial,  that  it  is  strongly 
recommended  in  business.  On  the  next  page,  I  have  given  a  form,  by  which,  when  the 
titles  are  once  written,  the  amounts  only  require  to  be  afterwards  inserted  until  the  end  of 
the  year. 


171 


I 


AN  IMPEOVED  POEM  01  MONTHLY  TBIAL  SHEET  POE  1867. 


Accounts. 

1 

Drs.       April.      Crs. 

DBS.        Mat.        Crs. 

DH8.        Juhs.       Cbs. 

P.  Duff, 

90 

0 

500 

42 

W.  Gordon, 

25 

76 

50 

James  Carter, 

9781 

50' 

10 : 

25 

800 

• 

Samuel  Gay  nor, 

;   488 

91 

'     82 

417 

Cash, 

2 

' 7775 ' 

76    7727  60 

825  < 

50 

864 

' 3149 ! 

25 

2939 

Merchandise. 

! 6014  i 

30    2372  25 

2629 

1547  25 

2564 

2387 

T.  P.  Cope  &  Sons, 

504 

504 

1079 

2300 

1221 

Wm.  Hay, 

200 

2694  40 

2200 

60 

168 

A.  Stuart  &  Co. 

291 

291 

James  Day, 

3 

28 

68 

50 

28 

18 

Edward  Pryor. 

63 

20 

200 

64 

183 

200 

Bills  Receivable, 

1091 

1   781 

375  50 

630 

496  50 

Bills  Payable, 

704 

704 

291 

7037  85 

291 

1221 

2351  iO 

City  Bank, 

4 

6550 

703  65 

5678  35 

2141  95 

Expense  Account, 

3 

60 

1 

345 

t 

!             i 

Interest  Account, 

20  85 

1     1 

4^5 

55  i 

to 

Commission  Sales, 

6 

251 

50      360  , 

1 

1 

576 

2740 

2920 

Robert  Banks, 

20 

1     1 

'     46  50 

198 

345 

R.  Butler, 

596  i 

^0      100 

577  50 

496  50  , 

100 

Privale  Ledger, 

1 

9000 

April 

* 

25156 ' 

r5  25156  75 

Profit  &  Loss, 

4 

1 

20 

150 

Duff  &  Gordon, 

5 

1 

45 

4125 

Sundry  Debtors, 

6 

220 

60 

200 

Commission, 

27 

• 

137 

May        .... 

14So8  60  ■ 

14868  ( 

50 

Sundry  Creditors, 

6 

1         1 

1     28 

100 

James  Reed, 

< 

278 

r5i 

100 

June       .... 

(3911  \ 

1 

3911  -3 

rs 

1.  The  above  form  of  monthly  trial  will  require  medium  or  royal  paper,  ruled  with  six  debit  and  credit  columns  on  each  page. 

This  will  enable  the  book-keeper  to  take  his  trial  in  about  half  the  usual  time,  inasmuch  as  the  titles  once  written  ser^-e 
for  the  whole  year. 

2.  As  our  Journal  is  not  posted  in  monthly  periods,  you  cannot  find  the  cash  and  merchandise  amounts  for  the  above  trial  from 

the  Ledger,  but  you  can  procure  them  from  the  Sales,  Invoice,  and  Cash  Books;  and  I  have  given  the  monthly  totals  in 
small  figures  in  the  margin  of  the  Journal,  so  that  you  can  see  when  your  trial  agrees  with  that  book. 

3.  Before  making  out  each  month  of  this  sheet,  go  over  the  Ledger,  carefully  adding  up  the  month's  business,  inserting  it  in 

pencil  in  the  margin  of  each  account :  from  these  marginal  figures  the  trial  is  filled  up. 

4.  To  facilitate  this  operation,  the  author  originally  had  his  Ledger  ruled  with  two  sets  of  money  columns  on  each  side,  so  that 

every  account  could  have  each  mouth's  business  extended  in  monthly  sections,  like  our  Cash  Book.  But  some  of  his 
mercantile  friends  expressing  a  strong  dislike  to  this  manner  of  ruling  the  Ledger,  ho  has  been  induced,  in  deference  to 
their  opinion,  to  abandon  it,  although  his  own  opinion  of  its  practical  utility  remains  unchanged. 

b.  Want  of  time  is  the  greatest  objection  to  the  monthly  trial,  but  it  is  believed,  that  if  a  proper  estimate  is  made  of  the  time 
usually  required  for  correcting  books  at  the  end  of  the  year,  the  advantage  will  often  be  in  favor  of  the  monthly  trial, 
which  gives  timely  notice  of  the  existence  of  error,  and  but  a  short  space  of  business  to  examine  in  order  to  find  it. 

6.  In  conclusion  we  may  also  name  another  advantage  of  the  monthly  trial.  When  it  always  comes  out  correct,  there  is  not 
any  necessity  of  ever  making  out  a  Balance  Account.  Dividends  can  be  safely  made  upon  the  Profit  &  Loss  Account, 
after  closing  into  it  all  accounts  representing  gain  or  loss.  Indeed,  this  may  be  done  in  any  case  where  there  is  satisfac- 
tory evidence  of  the  entire  correctness  of  the  books ;  but,  as  all  experienced  accountants  know,  in  the  ordinary  mode  of 
keeping  books,  the  Balance  Account  affords  the  only  satisfactory  evidence  of  this.  When  a  dividend  is  made,  and  a  net 
capital  exhibited  in  the  Stock  or  Partners'  Accounts,  the  Balance  Account  must  at  the  same  time  be  shown,  as  evidence 
of  the  existence  of  effects  to  represent  that  capital. 


172 


THE   PRIVATE  LEDGER. 


] .  The  object  of  this  book  having  been  explained,  Note  4,  p.  149,  we  have  now  only  to 
observe,  that,  although  it  is,  in  business  practice,  always  a  separate  book,  it  must  be  dealt 
with  as  though  it  formed  part  of  the  other  Ledger.  After  the  accounts  are  opened,  no 
public  business  can  require  any  reference  to  it.  Indeed,  no  reference  is  ever  required  to  it, 
except  at  the  time  of  closing  the  books  or  taking  the  trial.  The  sum  of  its  footings  must 
appear  upon  the  trial  as  you  see  on  p.  171.  At  the  time  of  closing,  the  transfers  are  all 
made  from  the  public  Ledger  to  Profit  &  Loss,  Suspended  List,  and  Balance,  as  if  these 
accounts  were  opened  in  the  same  book.  If  the  dividend  is  made  without  making  out  a 
balance  account,  as  suggested  in  Note  6,  p.  172,  the  course  to  be  followed  with  the  other 
accounts  in  this  book  will  still  be  the  same  as  it  now  is. 


Dr. 


P. 


(Stock  Acct.) 


DUFF. 


Apr. 

1 

June 

30 

Sundries,  Ledg.  A,   f.  1 
Cash,  8000.     1 

Profit  &  Loss.  f.  2 


Cr.      1 

2884  47 

115  53 

1400  53 


Net  Capital  at  date,         4400  53 


w. 


(Stock  Acct^) 


GORDON. 


im. 

A|Mr.    1   Sundries,  Ledg.  A,  f.  1      1717  58 

Cash,                     3000.  1     1282  42 

June  30:  Profit  &  Loss,            f.  2     1400  53 

Net  Capital  at  date,  4400  53 


JAMES 


(Stock  Acct.) 


CARTER. 


J 


1867. 

Apr. 


June 


Sundries,  Ledg.  A,   f  2  36  50 

Cash,  1  2000 

J.  Carter's  Pr.  acct.  sooo.  1  963  50 

30'  Profit  &  Loss,            f.  2  1400  54 

Net  Capital  at  date,  4400  54 


1.  We  have,  above,  carried  the  whole  amount  of  each  partner's  dividend  to  his  credit  in 
Stock  account,  but  our  attentive  student  no  doubt  recollects  what  we  stated,  Note  5.  p.  129, 
and  he  will  therefore  readily  understand,  that  the  partners  may  order  various  other  disposi- 
tions of  their  dividends;  for  instance,  they  may  agree  to  carry  a  certain  percentage  on  their 
capital  to  the  credit  of  their  private  accounts  to  cover  sums  that  they  have  withdrawn,  and 
allow  the  remainder  to  pass  to  the  credit  of  their  Stock  accounts  to  increase  their  capital. 
They  may  think  proper  to  order  the  whole  amount  to  the  credit  of  their  private  accounts 
or  draw  the  cash  for  it  as  soon  as  the  amount  is  known,  as  in  banks  and  joint  stock  com- 
|anies. 

173 


Dr. 


MDSE. 


ACCT. 


Cr. 


1867.  :     1867 

June  30  From  Public  Ledg.,   f.  2  11207  50    June  30  From  Public  Ledg.    f.  2     6306  50 
Profit  &  Loss,  2     4899.     1 1  i^iiiaiicu,  2  i  9800i 


2     4899 
16106  5(> 


Balance, 


9800 


16106  50 


1.  The  balance  will  always  be  brought  down  npon  this  Ledger.    Every  time  the  Ledger  is  balanced,  the  total  postings  to  tint 
account  on  the  Public  Ledger  are  transferred  by  double  balance  as  above. 


PROFIT 


& 


*  LOSS. 


1867. 


June  30  Expense,  Public  L.  f.  4 
Suspended  List,  1063.50  2 
P.  Duff,        i  n/g.  1 

W,  Gordon,  i    //  ^  1 

J.  Carter,     i    u         '  1 


1867. 

June  30  Pr,  &  Loss,  Pub.  L,,    f.  4 
Merchandise, 
I  Interest, 
Commission. 

0 


L.,   f. 

4 

130 

2 

4899 

4 

72 

10 

5265.10 
1063.50 

6 

1 

164 

4201.60 

IM0.S8 

5265 

10 

See  Notes  4  and  5,  p.  130,  and  Note  1,  p.  173. 

The  above  gain  is  carried  to  the  partners'  stock  accounts. 


BALANCE 


ACCOUNT. 


1867. 

1867, 

June  30   W.  Gordon,            fol. 

1          69  16    June  30 

P.  Duff,                  fol. 

1 

421 

91 

James  Carter, 

.   188  75  ,         1 

Wm.  Hay, 

2 

402 

40 

Samuel  Gaynor, 

62 

) 

Bills  Payable, 

3 

1221 

!  Cash, 

2 

219  90| 

Commission  Sales, 

5 

3856 

j  Mdse., 

9800 

R.  Banks, 

80 

50 

1  Edward  Pry  or. 

3       162 

Sundry  Crs., 

6 

72 

1  Bills  Receivable, 

1630      1 

P.  Duff,  n.  c, 

1 

4400 

53 

;  City  Bank, 

4     4278  lOi 

W.  Gordon,  n.  c. 

4400 

53 

Commission  Sales, 
Sundry  Drs.,      19255.41 

5  2765  50i 

6  80j 

19255  41; 

1 

James  Carter,  n.  c. 

4400 

54 

19255 

41 

1     ; 

SUSPENDED 


ACCOUNTS. 


1867. 

June  30  Robert  Butler, 
j  James  Reed, 


f. 


653.50 


I      ! 

5 

6 

1 
477 
178 

655 

50' 
50 

;    1867. 

June 

I 

30 

Profit  &  Loss, 

fol. 

2 

655 

50 

655 

50 

See  Notes  1  to  3  Suspended  List,  p.  134. 

We  have  only  to  remark  further,  that  if  these  accounts  have  been  closed,  you  will  allow  them  to  remain  so,  until  you  it'- 
ceive  a  payment  upon  them.  When  this  takes  place  the  account  is  to  be  re-opened  with  a  debit  for  the  suspended  bal- 
ance: but  this  cannot  be  done  upon  the  face  of  the  Ledger.  Profit  &  Loss  having  been  debited  for  the  amount  at  the 
last  balance,  mu.^t  now  be  credited  for  it  upon  the  Day  Book,  making  the  individual  Dr.  To  Profit  &  Loss  for  balance  per 
Suspended  List.  It  may,  perhaps,  be  asked,  why  not  carry  such  payments  to  the  credit  of  Profit  &  Loss,  without  re- 
opening these  accounts  ?  This  \sill  not  do,  because  these  individuals'  accounts  must  record  the  payments  they  have 
made  upon  them. 


174 


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I  T 

I 


ON  PARTNERSHIP  SETTLEMENTS. 

DIRECTIONS    FOR   CONDUCTING   THE    BOOKS    AFTER   THE    DISSOLUTION    OF   THE    FIR3I,    AND    RECORDING   THB 
TRANSACTIONS   FOR   EFFECTING   THE    SETTLEMENT  AND   FINAL   CLOSURE    OF   THEM. 

"When  a  concern  is  dissolved,  the  books  being  generally  left  in  the  hands  of  one  or  more 
of  the  firm  for  the  purpose  of  settling  up,  each  of  the  partners  should  be  provided  with  a 
Balance  Sheet,  similar  to  that  on  the  preceding  page.  From  this  Balance  Sheet  each  re- 
tiring partner  makes  the  proper  Journal  entry  in  his  own  books.  If  the  remaining  partners 
continue  the  business  in  their  own  name,  unless  they  have  bought  out  the  interest  of  the 
retired  partners,  they  should  make  no  use  of  any  of  its  books  to  record  transactions  relating 
to  their  own  business. 

To  those  who  understand  the  preceding  set  of  books,  the  following  Exercises  will  fully 
explain  the  subject.  The  student  should  write  out  his  own  answers  before  he  consults  those 
in  our  Key. 

EXERCISES   ON  WINDING  UP  PARTNERSHIP  BOOKS. 

1.  On  the  30th  June,  the  day  on  which  the  preceding  books  were  balanced,  suppose  thai 
Gordon  and  Carter  retire  from  the  firm,  and  leave  the  books  in  the  hands  of  Duff  for  settle- 
ment :  what  entry  will  each  retiring  partner  make  in  his  own  private  books  in  conformity 
with  the  Balance  Sheet  of  the  late  firm,  supposing  they  had  no  previous  entry  in  their  private 
books  of  their  investment  in  the  firm  ? 

2.  What  entry  will  Duff  make  in  his  books  ? 

3.  The  Bank  Deposit,  Cash  in  hand,  and  Bills  Receivable,  being  available  property,  what 
entry  will  Duff  make  of  the  same  in  his  books  on  receipt  of  them  ? 

4.  What  entry  will  he  make  for  the  same  in  the  books  of  the  firm  ? 

5.  What  entry  for  the  Merchandise  in  hand  and  debts  due  the  firm  ? 

6.  What  entry  in  his  own  books  when  he  makes  a  payment  of  $1000  in  cash  to  Gordon, 
one  of  the  retired  partners,  on  account  of  his  Stock  ? 

7.  What  entry  for  the  same  transaction  in  the  books  of  the  firm  ? 

8.  What  will  be  Gordon's  entry  when  he  receives  the  money  ? 

9.  What  will  be  Duff's  entry,  in  his  own  books,  when  he  sells  Merchandise  belonging  to 
the  firm  for  cash,  $2000  ? 

10.  What  entry  in  the  books  of  the  firm  for  this  sale  ?  • 

11.  What  entry  in  the  firm's  books  if  he  sell  James  Carter,  one  of  the  retired  partners, 
S3000  worth  of  Merchandise,  on  account  of  the  balance  due  him  by  the  firm  ? 

12.  What  entry  for  this  sale  in  Duff's  private  books  ? 

13.  What  entry  will  Carter  make  in  his  books  for  the  same  ? 

14.  What  entry  in  his  own  books,  when  Duff  collects  cash  due  the  firm  j  say  the  amount 
of  S.  Gaynor's  account  ? 

15.  How  will  the  same  be  entered  in  the  books  of  the  firm  ? 

16.  What  entry  in  his  own  books  when  he  pays,  cash,  a  debt  due  by  the  firm ;  say  the 
balance  due  Robert  Banks? 

17.  What  entry  for  the  same  in  the  books  of  the  firm  ? 

18.  When  the  merchandise  belonging  to  the  firm  is  all  disposed  of,  how  is  the  account  to 
be  closed  upon  the  books  of  the  firm  ? 

19.  If  any  of  the  personal  accounts  due  the  firm  are  wholly  or  partially  lost,  what  entry 
in  the  books  of  the  firm  at  the  final  settlement  ? 

20.  When  any  of  the  suspended  accounts,  say  Robert  Butler's,  is  collected  in  cash,  what 
entry  in  the  books  of  the  firm  ? 

21.  When  the  effects  of  the  firm  are  all  made  available,  how  is  the  Profit  &  Loss  account 
to  be  finally  closed  on  their  books  ? 

22.  How  will  the  partners'  accounts  be  finally  closed  on  the  books  of  the  firm  ? 

23.  What  entry  will  each  partner  make  on  his  own  books  to  close  the  account  with  the 
firm,  after  the  effects  are  all  paid  over  ? 

•  176 


PARTNEKSHIP  SETTLEMENTS.— PAET  11. 


The  foregoing  exercises  illustrate  the  course  to  be  pursued  when  a  firm  is  dissolved  with 
a  view  to  dividing  the  effects  only  as  they  are  collected  and  made  available.  But  it  will 
always  be  found  more  convenient  and  advantageous  for  all  parties,  if  the  retiring  partners 
agree  upon  a  stipulated  allowance  for  bad  debts,  expense  of  collecting,  &c.  In  this  ease, 
the  books  and  all  the  effects  of  the  firm  become  the  property  of  the  remaining  partners,  and 
they  continue  the  business  in  the  same  books  as  before  the  dissolution ;  at  the  same  time 
becoming  liable  to  the  retired  partners,  in  the  terms  agreed  upon,  for  the  balances  they  have 
accepted  for  their  interest  in  the  house. 

24.  Suppose  Gordon  and  Carter  retire,  and  Duff  takes  the  effects,  books,  and  the  whole  busi- 

ness into  his  own  hands,  assuming  all  the  liabilities  of  the  firm,  as  also  the  balances 
due  the  retiring  partners,  less  five  per  ct.  oft'  their  last  dividend,  to  cover  bad  debts, 
what  entry  will  he  make  upon  the  books  of  this  discount  ? 

25.  What  entry  will  Carter  and  Gordon  make  upon  their  books  to  show  the  transaction  ? 

After  this,  Duff  debits  them  as  he  pays  them  off,  in  cash,  merchandise,  &c. ;  they  at  the 
same  time  making  conforming  entries  in  their  books. 

In  the  above  exercises,  we  have  made  no  allusion  to  the  open  consignment  accounts.  In 
every  house  doing  a  commission  business  there  must  always  be  a  number  of  consignments 
on  hand,  partly  sold  at  the  time  of  closing  the  books.  When  a  balance  sheet  is  made  up, 
either  for  the  purpose  of  admitting  a  new  partner,  or  settling  with  a  retiring  one,  it  is  obvious 
that  the  commission  upon  these  sales,  as  far  as  they  are  effected,  must  be  taken  into  account; 
and  to  do  so,  the  commission,  so  far  earned,  must  be  carried  to  the  credit  of  the  commission 
account.  In  doing  so,  some  other  account  must  be  debited  for  the  same  amount :  now,  the 
question  is,  what  is  the  proper  account  to  debit  ?  It  would  be  manifestly  improper  to  debit 
the  sales  account  without  rendering  the  owner  a  statement,  and  it  is  by  no  means  proper  nor 
desirable  to  render  him  an  account,  unless  he  calls  for  it,  until  the  sales  are  completed. 

The  commission  thus  earned,  being  part  of  the  effects  of  the  parties  who  have  thus  far 
conducted  the  sales,  their  Balance  account  must  be  debited  for  it.  To  make  Balance  account 
Dr.  to  Commission,  is  a  peculiar  and  somewhat  anomalous  entry;  and  it  will,  perhaps,  be 
asked,  what  effects  have  we  got  to  represent  it?  To  this  we  reply,  that  the  entry  represents 
our  claim  against  this  person's  sales ;  and  this  claim  is  of  the  same  nature  as  that  against 
Ppyor,  or  any  other  individual.  The  only  difference  is,  that  we  do  not,  just  now,  for  the 
reasons  above  named,  place  the  amount  to  the  debit  of  the  sales. 

Now,  it  must  be  recollected,  that  the  Commission  account  closes  Bi/  Balance  and  to  Profit 
&  Loss;  ?nd,  like  all  other  balance-closing  entries,  this  one  must  be  brought  down  into  new 
account ;  and  when  the  account  afterwards  receives  its  credit  for  the  commission  on  the  sales, 
when  completed,  the  effect  of  this  debit  entry,  so  brought  down,  will  be  to  extinguish  its 
amount  out  of  the  credits  of  the  account  at  the  next  dividend,  thus  preventing  a  new  dividend 
of  that  portion  of  the  commission  accounted  for  in  the  old  account. 

When  dividends  are  made  as  we  have  suggested,  note  6,  p.  172,  without  making  up  a 
Balance  account,  then  our  Day  Book  entry  will  be.  Commission  new  account.  Dr.  To  old 
account  After  posting  the  credit  entry,  close  the  account  into  Profit  &  Loss ;  and,  after 
the  closing  lines  are  drawn,  post  the  debit  entry. 

It  is  to  be  observed  that,  in  business,  the  entries  we  are  now  considering  will  often  have 
to  embrace  the  commission  upon  a  large  number  of  different  accounts.  A  Day  Book  entry, 
specifying  all  the  particulars,  will,  therefore,  always  be  required  in  form  something  like  the 
followinir : — 


Balance  Account  Dr.  To  Commission. 
For  commission  5  per  ct.  on  A.  B.'s  sales  effected  to  date,  8500. 
/'  f         2i     //      on  C.  D.'s      //  <r  //       2000. 

'f  It         5      //      on  E.  F.'s      //  n  ii      3400. 


^25. 
50. 
170.     8245. 


It  may  be  proper  to  remark,  that  this  adjustment  of  the  commission  due  upon  the  sales 
thus  far  effected  makes  no  change  in  the  disposition  of  the  balance  of  the  account.      The 
differences  between  the  sales  and  the  charges  must  appear  in  the  balance  sheet,  as  usual. 
M  177 


DUFF'S  BOOK-KEEPING. 

I  may  also  observe,  that  I  am  now  treating  the  subject  of  Partnership  Settlements  for 
professional  readers  only;  persons  not  well  versed  in  the  science  of  accounts  will  not,  there- 
fore, find  it  intelligible  until  they  make  themselves  acquainted  with  the  principles  of  the  art, 
as  explained  in  the  preceding  part  of  this  work.  The  experienced  hook-keeper  will,  how- 
ever, no  doubt,  perceive  that  this  mode  of  adjusting  the  commission  effects  all  that  is  neces- 
sary for  making  and  recording  a  dividend,  without  disturbing  a  figure  in  the  consignment 
accounts — avoiding  the  awkward  expedient  of  either  making  a  partial  charge  of  commission 
in  the  account,  or  rendering  a  statement  of  it,  before  the  sales  are  completed. 

Such  of  our  readers  as  understand  the  application  of  this  principle  to  the  Consignment 
accounts,  will  readily  perceive  that  it  may  be,  at  any  time,  conveniently  applied  under  similar 
circumstances,  to  the  Interest  or  Profit  &  Loss  account,  or  any  of  its  branches. 

In  consequence  of  the  unexpected  retiring  of  a  partner,  between  the  periods  of  annual  or 
semi-annual  settlement  of  the  books,  a  balance  sheet  and  settlement  may  require  to  be  made 
with  the  retiring  partner,  when  it  would  be  extremely  inconvenient  and  irregular  to  present 
your  accounts  to  your  mercantile  neighbors  and  correspondents  for  settlement.  In  extensive 
houses,  where  interest  is  allowed  and  charged  on  book  accounts,  there  will  be  many  accounts 
upon  which  interest  will  be  running,  some  in  favor  of  the  house,  and  some  against  it.  We 
now  propose  to  show  by  a  short  pro  forma  statement,  with  what  ease  and  simplicity  interest 
upon  any  number  of  accounts,  notes,  bonds,  &c.,  may  be  adjusted  in  a  partnership  settlement 
without  disturbing  or  disfiguring  the  accounts.  It  must  be  recollected,  that  such  statements 
must  be  always  made  upon  the  Day  Book,  with  full  particulars  for  future  reference,  if 
required.     The  form  will  be  something  like  the  following : — 

Balance  Dr.  To  Interest  Account. 

For  balance  of  interest  due  us  on  Cox  &  Martin's  account  to  date,  $68. 
»  K  on  G.  Haven's 

WW  on  Henry  Noble's 

WW  on  John  Manly's  note 

Less  balance  of  interest  due  G.  W.  Smith  on  account 
ir.  »  Martin  Rowley  on  bond 

Balance  to  credit  of  interest  .  280. 

This  entry  is  posted  to  the  Balance  and  Interest  accounts,  as  directed  with  the  Commission 
account  last  page.  But  no  entry  is  now  made  at  the  accounts  of  any  of  the  above  parties  for 
these  amounts  of  interest.  Their  accounts  are  carried  ou  with  )ut  interruption  until  the  next 
period  of  settlement,  when  they  will  have  an  entry  for  the  interest  for  the  whole  period,  as 
if  no  adjustment  of  this  kind  had  now  taken  place  between  the  partners;  and  though  the 
interest  account  will  then  get  credit  for  the  whole  amount  computed  upon  the  accounts,  the 
balance  entry,  now  brought  down  from  the  old  account,  will  extinguish  that  amount  of  it, 
leaving  only  what  will  have  accrued  after  the  present  settlement  for  a  new  dividend. 

Our  attentive  reader,  no  doubt,  already  perceives  that  this  principle  may  be  applied  to  any 
account  which  we  do  not  wish  to  disturb  at  the  time  of  settling  or  balancing  the  books.  For 
instance :  the  1st  Co.  Sales  or  Ship  Pioscoe  and  owners,  p.  109,  may  be  dealt  with  in  the 
same  way,  by  making  Balance  Dr.  to  Profit  &  Loss  for  our  share  of  the  gain  to  date.  Then 
Profit  &  Loss  would  re-open  as  before  stated,  and  the  ship's  account  would  remai"  undisturbed 
until  the  time  of  making  the  dividend. 


n 

122. 

u 

140. 

• 

.       60. 

390 

•                   • 

70. 

• 

.      40. 

110 

178 


»lii 


ON  PARTNERSHIP  SETTLEMENTS. 

ON  KEEPING  PARTNERSHIP  BOOKS  WITH  A  STOCK  ACCOUNT. 


2. 

91. 

963.50 

■                 • 

504. 

•                 • 

200. 

•                 • 

€8. 

•                 ■ 

500. 

•                 « 

9000. 

Though  the  author  considers  the  manner  of  keeping  Partnership  Books  exemplified  in 
the  preceding  sets,  the  best  adapted  for  general  business  in  private  co-partnership,  yet  in 
some  large  firms,  particularly  manufacturing  establishments,  where  there  are  a  number  of 
silent  partners,  it  will  be  found  more  convenient  to  place  the  whole  capital  at  the  credit  of  a 
stock  account,  as  is  done  in  Banks  and  other  Joint-Stock  Companies.  In  this  case,  the 
amount  of  capital  invested  by  each  partner  is  shown  by  receipts  or  other  private  docu- 
ments. All  the  partners'  transactions  with  the  concern  are  recorded  precisely  as  they  are 
at  the  partners'  private  accounts  in  the  preceding  Ledger;  and  the  opening  Journal  entry 
will  be  the  same  in  all  the  debits  and  credits,  with  the  exception  of  the  33000  carried  to  the 
credit  of  each  partner's  stock  account.  This  will  appear  in  one  sum  ($9000)  at  the  credit  of 
the  Stock  Account;  and  no  separate  stock  account  will  be  opened  for  each  partner.  Take, 
for  illustration,  the  first,  second,  and  fourth  entries  of  our  Journal,  p.  157,  and  embrace  them 
in  one  entry,  viz. : 

Sundries  To  Sundries      .      $10272. 

Cash §5998. 

Merchandise 3217.50 

E.  Pryor 
S.  G-aynor     . 
James  Carter    . 

To  T.  P.  Cope  &  Sons 
//    William  Hay 
//   James  Day 
//    P.  Duff 
//   Stock 

Carrying  the  whole  capital  to  the  credit  of  the  Stock  account,  as  if  it  were  an  individ  - 
business. 

As  we  have  before  remarked,  the  disposition  of  the  Profits  is  altogether  a  matter  of  privut. 
agreement.  If  it  be  agreed  to  carry  the  whole  profit  to  Stock,  to  increase  the  capital,  tlu 
Profit  &  Loss  will  close  thus — see  p.  174. 

Profit  &  Loss  To  Stock  for  net  gain 

If  it  be  arranged  that  the  profits  are  to  be  divided : 

Profit  &  Loss  To  Sundries  .        .  $4201.60 

To  P.  Duff  for  his  i  net  gain    .... 
//   W.  Gordon       n        .         ,         ... 
//   J.  Carter  //  ..... 

Or,  if  they  agree  to  divide,  say  10  per  cent,  upon  their  capital,  and  allow  the  surplus  to 
increase  the  stock — 10  per  cent,  on  $9000  is  900. 

Profit  &  Loss  To  Sundries        .        .        $4201.60 

To  P.  Duff  for  his  10  per  cent,  dividend       .         .       300. 
//   W.  Gordon  //  .         .  300. 

//  J.  Carter  n  .         .       300. 

//   Stock  for  surplus  profits     ....         3301.60 
At  the  time  of  dissolution,  or  any  other  time,  if  desired,  the  stock  may  be  closed  into  the 
partners'  accounts,  thus : 

Stock  To  Sundries,  to  close  account     .     $13201.60 

To  P.  Duff  for  his  i  capital       ....  4400.53 

//   W.  Gordon         u  ....  4400.53 

II   J.  Carter  n 4400.54 

The  partners'  accounts  will  then  show  what  is  due  them  by  the  firm,  or  what  thev  h:ivi' 
to  refund,  if  any  of  them  have  overdrawn. 

179 


$4201.60 


1400.53 
1400.53 
1400.54 


il 


DUFF'S   BOOK-KEEPING. 


ON  PARTNERSHIP  SETTLEMENTS. 


ON  ADJUSTING  INTEREST  ON  PARTNERS'  ACCOUNTS. 

The  author  left  the  exemplification  of  this  matter  out  of  his  Partnership  Books,  believing 
that  he  could  give  a  more  comprehensive  explanation  of  it  in  a  separate  section,  than  upon 
a  Day-Book. 

Many  book-keepers  cast  interest  upon  each  partner's  capital,  and,  after  deducting  from 
this,  interest  on  the  sums  withdrawn,  carry  the  balance  to  each  respective  partner's  credit, 
and  to  the  debit  of  the  Interest  account.  Although  the  results  arising  out  of  this  disposition 
of  the  interest  will  all  come  out  perfectly  correct,  yet  it  gives  such  a  distorted  appearance  to 
the  Interest  account,  that  we  think  the  following  adjustment  will  be  preferred  by  all  good 
accountants.  It  will  be  observed  that  the  interest  is  adjusted  between  the  partners'  accounts 
without  disturbing  the  Interest  account,  which  should  embrace  nothing  but  the  interest  of 
business  transacted  with  the  firm. 

Suppose  Hay  &  Gordon,  partners,  to  share  equally  in  the  gain  or  loss,  and  the  interest 
upon  Gordon's  capital  to  be  .......  8240. 

Less  interest  on  sums  withdrawn        .         .         .         .         .  80.     Balance  160. 


Interest  upon  Hay's  capital 
Less  interest  on  sums  withdrawn 


150. 
50.     Balance  100. 


Balance  of  interest  in  favor  of  Gordon 


60. 


Here  we  cancel  the  SlOO  interest  due  to  Hay,  and  allow  it  to  extinguish  that  amount  out 
of  the  S160  due  to  Gordon.  Then,  by  a  little  reflection,  the  reader  will  perceive,  that  if  he 
credits  Gordon  for  the  remaining  860,  and  debits  the  Interest  account,  Gordon  will  himself 
have  afterwards  to  pay,  out  of  his  share  of  the  profits,  one-half  of  this  860,  and  Hay  the 
other  half:  then,  if  we  make 

Hay  Dr.  To  Gordon  for  half  balance  of  Interest,  830. 

the  result  will  be  correct.  It  will  leave  both  partners'  accounts  in  the  same  position  as  if 
they  had  been  credited  for  their  respective  balances  of  interest  above  stated. 

When  there  are  more  than  two  partners  a  difi"erent  operation  is  required.  The  following 
rule  will  serve  for  any  number  : — 

Rule. — Add  together  the  balances  of  interest  due  to  each  partner  :  divide  the  sum  by 
the  number  of  partners ;  the  quotient  is  the  average,  or  amount,  of  interest  that  would  be 
due  to  each  partner,  provided  they  were  equally  interested.  Therefore,  the  balances  above 
the  average  must  be  placed  to  the  credit  of  their  respective  owners,  and  those  below  it 
must  appear  at  the  debit  of  their  owners.  The  sum  of  the  differences  above,  and  that  of 
the  differences  below,  the  average,  will  always  equal  each  other,  as  will  be  seen  by  the 
following  illustration : — 

Suppose  the  bal.  of  Interest  due  Duff    8650  —  394.  Bal.  for  Duff's  Cr.  256. 

394.      //         Gordon  Cr.    96.  Total  Crs.  352. 


n 


Number  of  partners 
And 


Gordon  490 
Hay  250. 
Banks  186. 

.     4)1576. 

394- 
394  - 


186.  Bal.  for  Banks' Debit  208. 

250.     //         Hay's      //     144.  Total  Drs.  352. 


The  Journal  entry  will  be, 

Sundries  To  Sundries  8352. 
Banks,  for  balance  of  interest  on  his  capital 
Hay,  for         »  //  »  .         . 

To  Duff,  for  balance  of  interest  due  him  on  his  capital 
u   Gordon,  for  //  //  // 

180 


8208. 
144. 


256. 
96. 


The  principle  just  applied  to  the  settlement  of  partners'  interest,  will  often  be  found  useful 
in  arranging  other  matters  in  partnership  settlements.  We  have  known  an  expert  account- 
ant not  a  little  perplexed  to  settle  a  matter  similar  to  the  following. 

George  Draper,  William  Stone,  James  Best,  and  Charles  Hill,  having  lately  dissolved  their 
firm,  sold  off  all  their  effects,  divided  the  proceeds,  and  find  their  accounts  standing  as  follows : — 

There  is  a  balance  due  to  Draper  of  $460,  to  Stone,  8270,  to  Best,  8184,  to  Hill,  8430. 
Their  shares  in  the  business  were  each  one-fourth,  their  books  were  kept  by  Single  Entry, 
and  there  are  no  farther  effects  to  divide.  Required  the  settlement  of  the  matter  between 
the  partners. 

Balance  due  Draper  is 
//  Stone,   is 

«r  Best,     is 

w  Hill,      is 

Number  of  partners, 
Each  partner's  loss. 

Now,  it  appears  that  the  whole  loss  was  81344,  which,  when  borne  equally  by  the  four 
partners,  will  leave  a  balance  due  to  each  of  8336,  and  those  who  have  drawn  out  so  far  as 
to  reduce  their  balances  ftefow?  this,  must  refund  the  difference  to  those  whose  balances  ej:ceed 
this  amount.     It  will  be  better  understood  in  a  Journal  entry. 


.  8460- 
.   270. 

184. 

430- 

-  336  —  124. 
-336—  94. 

218 

4)1344 
336- 
336- 

-  270  —  66 
- 184  —  152. 

218 

Sundries  To  Sundries,  8218. 
George  Draper, 

Charles  Hill,      .         .         .         . 
To  Wm.  Stone,  . 

J.  Best,     .         .         .        . 


$124. 
94. 


// 


66. 
152. 


When  the  above  sums  are  paid  over  by  Stone  &  Best,  and  received  by  Draper  &  Hill, 
the  above  Journal  Entry  will  be  made,  and  when  the  amounts  are  posted,  they  will  leave  the 
balances  due  to  each  partner  equal,  viz. :  8336,  the  amount  of  each  partner's  loss. 

Before  concluding  the  subject  of  partnership  settlements  it  will  be  proper  to  direct  the 
reader's  attention  to  settlements  upon  investments  of  part  of  the  joint  capital  of  the  firm, 
in  which  it  is  arranged  that  the  profits  or  losses  are  to  be  divided  in  different  proportions 
from  those  of  their  general  business  :  for  instance,  suppose  Hay,  Wood  &  Banks,  equal  part- 
ners in  business,  purchase  the  Union  Cotton  Factory  for  $16000,  paying  one-fourth  in  cash, 
and  giving  the  notes  of  the  firm  for  the  balance,  812000.  Wood  &  Banks  decline  owning 
more  than  one-fourth  each  of  the  mill,  whereupon  Hay  takes  the  other  half  It  is  agreed 
that  the  gain  or  loss  by  the  factory  shall  be  divided  in  these  proportions.  Required  the 
Journal  entry  for  opening  the  account. 


Sundries  To  Sundries. 
Hay,  .... 
Wood,     . 
Banks, 

To  Bills  Payable, 
//   Cash, 


88000 
4000. 
4000. 


12000. 
4000. 


The  receipts  and  expenditures  of  the  mill  will  be  kept  under  the  head  of,  Union  Mill  and 
owners,  and  dividends  made  of  the  gain  or  loss,  as  with  Ship  Roscoe  and  owners,  page  97. 
But  the  cost  of  purchase  can  be  placed  to  no  other  accounts  than  those  of  the  owners  while 
they  own  it  in  proportions  different  from  their  business. 

181 


» 


DUFF'S  BOOK-KEEPING. 


CONCLUDING  RExMARKS  UPON  SET  II. 

We  have  already  demonstrated  the  advantai;es  of  this  mode  of  arranging  and  conducting 
books.  We  have  practically  exemplified  its  efficacy  in  preventing  error,  and  the  facilities  it 
aflfords  for  detecting  it  when  it  occurs.  We  have  shown  that  no  entry  once  made  upon  the 
Day  Book,  or  any  of  the  primary  books,  can  afterwards  be  omitted,  in  its  passage  through 
the  books,  without  detection.  While  the  common  Double  Entry  Trial  Sheet  proves  nothing, 
but  that  Ledger  agrees  with  itself;  if  what  is  posted  into  it  is  posted  correctly  the  trial  will 
say,  all  is  right,  no  matter  how  much  you  may  leave  behind  in  the  primary  books.  Our  trial 
requires  the  Ledger  to  agree  with  all  the  other  books,  thereby  affording  a  security  against 
error,  which  we  believe  has  never  yet  been  introduced  into  practice. 

It  will  be  proper  to  point  out  the  advantage  that  will  be  derived  from  even  a  partial  adop- 
tion of  this  method.  Persons  who  do  not  choose  to  adopt  and  apply  it  to  its  full  extent,  may 
introduce  a  single  book  at  a  time,  and  keep  it  upon  this  principle  in  connection  with  the 
common  Double  Entry  books,  and  derive  all  the  advantages  we  have  pointed  out,  as  far  as 
that  book  is  concerned,  without  disturbing  either  their  other  books  or  their  business.  Take 
our  Cash  Book,  for  instance,  p.  144,. and  you  will  find  nothing  in  it  to  prevent  its  being  kept 
in  connection  with  auy  kind  of  books  whatever.  It  admits  of  being  balanced  like  any  other 
Cash  Book,  at  any  time  that  it  suits  your  convenience,  the  outer  columns  being  always  for- 
warded, unbroken  by  the  balances,  to  correspond  with  their  representatives  in  the  Ledger, 
and  as  soon  as  an  error  gets  into  one  book  or  the  other,  a  disagreement  between  the  amount 
of  these  columns  is  the  immediate  consequence.  You  see  at  once  which  side  it  is  upon,  and 
then  have  only  to  ascertain  where  this  disagreement  commences,  and  you  find  the  error 
immediately. 

But  with  the  old  form  of  Cash  Book,  although  you  perceive  by  its  disagreeing  in  balance, 
with  that  of  the  account  in  the  Ledger,  it  affords  not  the  slightest  clue  to  where,  or  upon 
which  side,  the  error  exists.  You  have  no  means  of  finding  it,^but  by  beginning  at  the  time 
the  account  was  last  balanced  on  the  Ledger,  and  comparing  every  entry  on  both  sides. 

The  same  remarks  apply  to  our  Bill  Books.  The  clearness  and  simplicity  of  these  accounts, 
when  conducted  upon  this  method,  must  be  apparent  to  all.  We  have  spent  days  in  correct- 
ing a  Bill  account,  where  the  number  of  entries  was  not  over  one  hundred,  but  where  the 
notes  on  one  side  were  frequently  posted  in  collected  amounts,  and  on  the  other,  broken  up 
and  posted  in  partial  payments,  endorsed  upon  the  notes.  We  have  no  fear  of  any  book- 
keeper, who  has  had  a  task  of  this  kind  to  perform,  readily  appreciating  the  value  of  our 
plan  of  keeping  these  books  and  accounts. 

Those  who  keep  a  Sales  Book  can  derive  the  same  advantages  from  it  in  connection  with 
common  books  as  we  do.  It  will  check  the  credit  side  of  the  merchandise  account,  and  if 
they  choose,  they  can  post  the  merchandise  from  it,  in  accumulated  amounts,  as  we  have 
recommended,  p.  142.  The  same  remarks  apply  to  the  Invoice  Book  if  properly  kept.  And 
tliere  is  nothing  to  prevent  any  one  from  footing  and  forwarding  the  amount  of  their  Day 
Book  to  check  the  Journal.  Our  form  of  Check  Book  may  be  introduced  in  any  business, 
with  all  the  advantages  we  have  pointed  out  in  correcting  the  Bank  account.  In  a  word,' 
the  introduction  of  our  method  requires  no  upsetting  of  the  established  principles  of  con- 
ducting accounts,  in  any  establishment.  It  can  be  introduced  by  piecemeal— one  book  at  a 
time  until  its  practical  working  is  fairly  tested. 


182 


KEY, 


CONTAINING  THE   ANSWERS   OF   SUCH   EXERCISES   AS   ARE   NOT 

GIVEN  IN  THE  PRECEDING  WORK. 


Answers  to  the  Questions  for  Examination  on  Balancing  the  Introductory  Set 

Page  36. 

Ans.  1. — The  Stock  and  Balance  accounts  show  the  net  capital  $2980. 
At  the  second  balance  it  is       .         .         .         .  28500. 
2. — The  Profit  &  Loss  account  shows  a  loss  of        .         .        20. 
In  the  second  balance,  a  gain  of       .         .         .      520. 
3. — My  whole  gain  was  $260.;  my  whole  loss  was  $280. 

In  the  second  balance,  the  whole  gain  was  $673.75;  the  whole  loss,  S153.75. 
4. — I  gained  $170.  on  the  first,  and  $600.  on  the  second  balance. 
5. — $1700.  on  the  first,  and  (the  balance  brought  down  included)  $4600.  in  the  second 

balance. 
6. — $1870.  in  the  first,  and  $2200.  in  the  second  balance. 
7. — None  in  the  first  balance;  in  the  second,  $3000. 
8.— $3080.  in  tlie  first,  and  $7300.  in  the  second  balance. 
9. — $500.  in  the  first,  and  $3000.  in  the  second  balance. 
10. — $300.  in  the  first,  and  the  same  in  the  second  balance. 
11. — The  Cr.  side  of  Balance  account  shows  it  to  be  $900.  in  the  first,  and  $2800.  in 

the  second  balance. 
12. — The  Dr.  side  of  Balance  account  shows  the  first  $3880.;  the  second.  31,300. 
13.— The  Cr.  side  of  Stock  shows  it  to  be  $3000.  in  the  first,  and  $2980.  in  the  second 

balance. 
14. — Solution  given  for  first  Balance,  is  $7l§|. 
15. —  do,  do.  is  10  per  cent. 


i 


I 


PROOF  SHEET  FOB,  LEDGER  B,  June  30,  1867 


Stock   . 

Merchandise 

Bills  Receivable    . 

William  Hay    . 

Bills  Payable 

House  in  Broadway  . 

Robert  Morris 

Ship  Hudson    . 

Profit  &  Loss 

Shipment  to  Liverpool 

J.  Taylor  &  Co.     . 

Commission 

Estate  A.  Lenox   . 

House  in  Cedar  Street 

City  Bank  Stock  . 

C.  Lenox . 

R.  Lenox 

Cash 

C.  Hartwell  . 


DBS. 


CK9. 


f.    1 

3 

4 

5 
6 

7 
8 

10 


12 


ll 


183 


DUFF^S  BOOK-KEEPING. 


ANSWERS   TO  THE   EXzVMINATION   ON   PAGE   36, 

Applied  to  closing  the  principal  Ledger,  referred  to  at  the  Balance 

Account,  p.  118. 

Ans-  1. — Stock  and  Balance  show  it  to  be  861,544.50. 

2. — Profit  &  Loss  account  shows  it  to  be  $28,044.50. 

3.— Total  gains.  831.599.30.     Total  expenses  and  losses,  83554.80. 

4.— I  gained  813,743.12. 

5. — Total  purchases  were  850,830.10. 

6.— Total  sales,  846,445. 

7. — Amount  on  hand,  per  Inventory,  is  818,128  22. 

8. — Cash  account  shows  it  to  be  88891. 

9. — Bills  Receivable  account  shows  it  to  be  88680. 
10. — Bills  Payable  account  shows  it  to  be  86927.22. 
11. — The  Balance  account  shows  it  846,750.34. 
12.— The  Balance  shows  it  8108,294.84. 
13.— The  Stock  shows  it  831,300. 
14. — Allowing  156  business  days  between  the  1st  January  and  30th  June, — 


the  average  daily  sales  would  be 
15. — The  total  purchases  were    . 
The  amount  on  hand  is 


8297.72 


50,830.10 
18.128.22 


Leaving  the  cost  of  the  part  sold     .         .         .  832,701.88 

Then,  32,701.88  :  13,743.12  : :  100  :  42  per  cent,  average  gain,  nearly. 

The  teacher  should  now  require  the  learner  to  give,  upon  a  slate  or  sheet  of  paper,  the 
opening  Journal  entry  of  the  contents  of  this  Ledger,  supposing  it  was  required  to  transfer 
the  same  to  a  new  set  of  books.     It  would  be : 


Sundries  To  Stock    . 

, 

•                  •                  • 

8108,294.84 

Merchandise  . 

fol. 

1 

818,128.22 

Bills  Receivable 

// 

3 

8.680. 

House  in  Broadway 

// 

4 

15.000. 

R.  Morris 

// 

5 

5.676.59 

Ship  Hudson  . 

// 

6 

16.000. 

Shipment  to  Liverpool 

// 

7 

8.000. 

John  Taylor  &  Co. 

.     w 

8 

1.745.28 

House  49  Cedar  Street 

■     II 

10 

12,000. 

City  Bank  Stock     . 

.     II 

It 

10,000. 

Charlotte  Lenox 

.     II 

II 

500. 

Robert  Lenox 

.     It 

II 

800. 

• 

Cash 

It 

12 

8,891. 

C.  Hartwell    . 

II 

II 

2,863.75 

Stock  To  Sundries    . 

. 

• 

846,750.34 

To  William  Hay     . 

fol. 

3 

•                 • 

810,813.12 

//   Bills  Payable     . 

// 

4 

•                 • 

6.927.22 

'/   Estate  of  A.  Lenox 

.     // 

10 

• 

29,010. 

\\Ia 


He  should  also  be  directed  to  make  the  same  entry  upon  the  principle  explained  in  Note 
1,  p.  70,  viz. — 

Sundries  To  Sundries,  8108,294.84. 

Inserting  the  debits  of  the  Balance  account  for  one  side  of  the  entry,  and  the  credits  for 
the  other  side.  This  form  of  the  opening  entry  of  books  makes  only  one  entry  for  the 
Stock  account — the  net  capital,  and  is  to  be  preferred  to  the  common  method  of  making 
two  entries. 

184 


1. 

2. 

3. 


5. 

6. 

7. 

8. 

9. 
10. 
11. 
12. 
13. 
14. 
15. 
16. 
17. 
18. 
19. 
20. 

21. 
22. 

23. 

24. 


25 


KEY. 


ANSWERS   TO  THE   EXERCISES   ON  PAGE  176. 

Duff,  Gordon  &  Co.,  the  late  firm,  Dr.  to  stock  for  the  balance  due  tliem  on  the 

firm's  books. 
The  same  f>j6  the  other  partners. 
Sundries,  Dr.  to  Duff,  Gordon  &  Co. 
Cash,  for  the  money  in  hand. 
City  Bank,  for  balance  transferred. 
Bills  Receivable,  for  amount  of  Notes  in  hand. 
Duff,  Dr.  to  Sundries. 

To  City  Bank,  to  close  account. 
//  Cash,  do.         do. 

//  Bills  Receivable,  do. 

No  entry  until  converted  into  available  funds. 
Duff,  Gordon  &  Co.,  Dr.  to  Cash  81000. 
Gordon,  Dr.  to  Duff  .  .  .  1000. 
Cash,  Dr.  to  the  late  firm  .  .  1000. 
Cash,  Dr.  to  Duff,  Gordon  &  Co.  2000. 
Duff,  Dr.  to  Merchandise  .  .  2000. 
Carter,  Dr.  to  Merchandise  .     3000. 

No  entry,  he  having  given  the  firm  no  credit  for  the  Merchandise. 
Merchandise,  Dr.  to  Duff,  Gordon  &  Co.       83000. 
Cash,  Dr.  to  Duff,  Gordon  &  Co.  .         .     62. 

Duff,  Dr.  to  S.  Gaynor,  to  close  account        .     62. 
The  firm,  Dr.  to  Cash,  paid  R.  Banks  in  full     80.50 
Banks,  Dr.  to  Duff,  to  close  account     .         .     80.50 
The  same  as  if  the  firm  still  existed.  To  or  By  Profit  &  Loss. 
Profit  &  Loss,  Dr.  to  the  individual,  for  the  amount  lost. 
Re-open  the  account  as  directed,  Suspended  List,  p.  174;  then.  Duff,  Dr.  to  Butler, 

for  the  amount  received. 
In  the  usual  way,  To  or  By  the  partners'  accounts. 
When  Duff  pays  over  each  partner  the  balance  due  him,  it  will  close  both  their 

accounts  and  his. 
They  will  close  their  accounts  To  or  By  Profit  &  Loss. 

Sundries,  Dr.  to  Profit  &  Loss 140.05. 

J.  Carter,  for  5  f  cent,  discount  on  81400.53     870.02 
W.Gordon,         do.  do.  ...     70.03 

Duff,  Dr.  to  Stock,  for  balance  due  on  account,  less  discount  allowed. 


Remark. — By  a  careful  comparison  of  the  abovo  answers  with  the  questions,  p.  176,  and 
the  amounts  in  the  balance  sheet,  it  will  be  seen,  that  although  the  firm  no  longer  exists, 
each  partner  must  keep  his  account  with  it,  and  it  keeps  account  with  them  until  finally 
settled  up.  The  books  of  an  old  firm  must  record  the  whole  settlement  of  its  affairs,  as 
completely  as  if  it  still  existed. 

The  retiring  partners  can  never  debit  the  remaining  ones  for  their  claim  against  the  firm. 
The  remaining  partners  are  not  accountable  any  faster  than  the  effects  are  converted  into 
available  funds.  To  carry  such  entries  into  private  account  would  inevitably  lead  to  the 
greatest  confusion. 

It  is  at  all  times  advisable,  where  the  amount  can  be  agreed  upon,  for  the  parties  to  agree 
to  an  allowance  for  bad  debts,  &c.,  and  one  party  to  sell  out,  and  the  other  to  buy,  :is  exem- 
plified in  questions  24  and  25.     The  business  then  goes  on  without  interruption. 

When  this  arrangement  cannot  be  effected,  the  new  firm  has  no  other  course  to  follow, 
than  that  laid  down  upon  page  176.  And  if  it  has  dealings  on  its  own  account  with  the 
retired  partners,  the  greatest  care  must  be  taken  to  distinguish  between  payment*  made  ou 
private  account,  and  on  account  of  the  late  firm,  otherwise  the  accounts  of  the  new  and  old 
firm  may  become  involved  in  inextricable  confusion. 

185 


DUFF'S  BOOK-KEEPING. 


MANUFACTURERS'  FORMS. 


TIME  AND  WAGES  REGISTER  OF   THE  PITTSBURGH  NOVELTY  WORKS. 


1867. 

Jauvabt  1. 

JAN0ART  8. 

Name. 

Quantity. 

Bate. 

Amount. 

24 

Quantity.                  Rate.        Amount. 

Patrick  Birch 

6  doz.      Locks. 

I                 i 

t 

John  Brown 

5j  //            // 

5. 

27  50 

Robert  Hammer 

4    //            » 

6. 

24                                              i 

1 

Levi  Wall                ! 

31  //            t 

7. 

24  50 

i                        ' 

Joel  Black 

2i  //            '/          8. 

20 

Wm.  End                 ; 

I    15    'f      Latches.     1.50 

22  50 

1 

Charles  Dunn 

12    If            If          1.75 

21 

1 

Toseph  Castle 

10    //            //          2. 

20 

John  Cross 

25    "        Hooks.        .50 

12  50 

George  McCoy 

30    //            //            .40 

12 

Forward 

t             !   • 

208 

1 

1                                 1 

'  The  above  form  is  designed  for  paying  the  men  by  the  piece,  in  weekly  payments.  We 
have  extended  the  first  week's  wages  upon  the  first  page.  In  business,  the  above  $208  is 
brought  forward  into  the  head  of  the  "  amount"  column  upon  the  next  page,  and  so  con- 
tinued from  page  to  page  until  the  whole  list  of  workmen  (often  several  hundred)  is  com- 
plete. On  pay-day  the  whole  list  is  extended  as  above.  The  men  assembled,  the  pay-clerk 
calls  the  names  in  their  order  upon  the  Register,  hands  each  the  amount  due  him,  and 
checks  it  upon  the  left  money  column,  thus  |/. 

From  the  foot  of  the  last  page  of  the  Register,  the  weekly  amount  total  is  transferred 
and  marked  "  entered  Cash  Book." 

This  book  should  be  made  of  paper  large  enough  to  contain  four  weeks'  business.  It 
will  save  writing  to  continue  the  ruling  over  two  pages.  The  names  will  not  then  have  to 
be  re-written  until  the  weekly  spaces  are  all  filled.  If  a  workman  is  discharged,  it  is  noted 
opposite  his  name,  and  his  remaining  weekly  spaces  remain  blank. 


186 


DUFFS  BOOK-KEEPING.— MANUFACTURERS'   FORMS. 


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187 


FORM  OF  A  RECEIVING  AND 

KECEIVED. 


Date. 


Marks  and  Articles. 


1M7. 
Jan. 

i 

1 

2 

Feb. 

Mar. 

Apr. 

10 

1 

10 

20 

1 

10 

1       \ 

C.  D.  14  Bales 


Received  from. 


Penna.  R.  R. 


Consigned  to. 


Weights. 


Charges 
paid. 


t 


C.  Day,  Cincinnati 


700,  70 
460,  970 
1  466,  671 
I  221,  970 
I  447,  100 
I  801,  1200 
!  740,  1427 


369!  72 


W.Wade,  170  B.  Flour 
R.  0.,  2  Hhds. 
W.&Co.lOHhds.Hama 
B.  &  Co.,  200  B.  Flour 
J.  P.  9  Bales 


P.P.  W.&C.R.R. 

S.  B.  Velocity 
S.  B.  Dart 
S.  B.  Peru 
Penna.  R.  R. 


10    W.  H.300B.  Oil 


;   S.  B.  Diadem 


W.  Wade,  N.  Y. 
R.  Owens,  Ph'ilada. 
Webb  &  Co.,  N.  Y. 
Beck  &  Co.,  N.  Y. 
J.  Pope,  :"t.  Louis,  Mo. 


9248 


Pike  &  Co.,  Baltimore 


400, 
300, 
660, 
430, 
210, 


740 
860 
610 
920 


6130. 


86 


60 

102 


FORWARDING  REGISTER. 

FOEWARDED. 


Date. 


1867. 

Jan. 


60 


75 


The  above  form  will  be  found  suitable  to  almost  all  kinds  of  Receiving  and  Forwarding 
business.  It  will  be  seen  that  the  column  for  "  weights"  is  left  blank  when  the  freight  is 
charged  by  the  package ;  and  the  money  column,  "charges  paid,"  is  only  used  when  we  have 
to  pay  charges  to  the  carrier  from  whom  we  receive  the  articles. 

The  amounts  of  commission  and  charges  are  entered  in  the  Cash  Book  and  Journal,  out 
of  the  column  "  commission  and  charges,"  when  the  amount  is  marked  off  thus,|/.  Some- 
times we  collect  both  commission  and  charges  of  the  conveyance  by  which  we  forward,  insert- 
ing the  amount  in  their  bill  of  lading,  to  collect  of  the  consignee  when  they  deliver  the 
freight.  If  we  have  an  account  with  the  consignee,  we  can  debit  his  account  for  the  amount. 
Suppose  this  to  be  the  case  with  the  first  entry  above,  our  Journal  entry  will  be 


C.  Day,  Dr.  to  Sundries  .... 

To  Cash,  paid  charges  to  Penna.  R.  R.  on  14  bales 
//   Commission,  forwarding  same  p.  S.  B.  Herald 


188 


8415.94 


369.72 
46.22. 


Feb. 
Mar. 
Apr. 


15 
16 
20 
21 
4 


Conveyance. 


Articles  and  Weights. 


Consigned  to. 


Comm. 


Comm.  k 
Charges. 


Steamer  Herald  14  Bales  9243  cwt.  C.  Day,  Cincinnati 


46    22     415    94 


Penna.  R.  R. 
//  H 

u  It 

n  n 

S.  B.  Dart 


11 


170  Bbls.  Flour 
2  Hhds.  Tobacco 
10  Hhds.  Hams 

200  B.  Flour 
9  Bales 


W.  Wade,  New  York 
R.  Owens,  Philada. 
Webb  &  Co.,  N.  York 
Beck  &  Co.,  N.  York 
J.  Pope,  St.  Louis 


8  50   93  50 

2  2 

10  i   l!  10 

10  60 

25  65  128  25 


Penna.  R.  R. 


300  Bbls.  Crude  Oil 


Pike  &  Co.,  Baltimore      30 


105 


Or,  if  our  arrangements  require  us  to  charge  the  boat  or  company  by  which  we  forward, 
take  the  second  entry : 

Penna.  R.  R.  Co  ,  Dr.  to  Sundries  ....         $93.50 
To  Cash  paid  P.  F.  W.  &  C.  R.  R.  on  170  Bbls.  Flour  85. 

//  Commission,  forwarding  same         ....  8.50. 

If  we  collect  of  the  conveyance,  we  debit  cash  for  the  amounts  so  collected.     Credits 

as  above. 

In  extensive  business,  this  book  must  be  paged  and  the  consignees'  names  indexed.     The 
index  will  be  of  the  common  form,  and  lettered  in  the  beginning  of  the  book. 


189 


DUFF'S  BOOK-KEEPING. 

RATES  OF  STORAGE   • 

ALLOWED   BY   THE   CHAMBER   OF  COMMERCE  OF  PHILADELPHIA   WHEN   NO   SPECIAL 
AGREEMENT   IS  MADE,  OR  NOTIFICATION  GIVEN.— CHARGEABLE  PER  MONTH. 


Almonds,  per  bale 

Ashes,  per  bbl. 

Bale  Rope,  per  100  lbs 

Barilla,  per  ton 

Bark,  Quercitron,  per  hlid. . 

Bottles,  per  gross     . 

Burr  Stones 

Butter,  per  keg 

Candles,  per  box  25  lbs 

//         Sperm,  per  box 
Cassia,  per  box 

//      per  100  lb  mats 
Champagne,  in  baskets,  per  doz. 
Cheese,  per  100  lbs       .         .         . 
Coal,  in  shed  or  yard,  i  per  bushel. 
Cocoa,  per  100  lbs     . 
Codfish,  per  drum 

//        loose,  per  100  lbs 
Coffee,  per  hhd.    .         .         .         . 

//      in  100  lb  basrs 
Copper  sheathing,  per  case    . 

//  rods,perl001bs 

Cordage,  per  100  lbs 
Corks,  per  bale     .         .         .         . 
Cotton,  per  square  bale 

II       per  round  bale 
Duck,  per  pack,  2  bolts 
Dyewoods,  Braziletto  and  Nica- 


Ground  I  Cellus 
Floor       or  lofts. 
Cents.  I  Cents. 


10 

7 

2 
30 
30 

8 

li 


8 
6 

1* 
25 
25 

6 

I 


f       h 


1 
5 

12J 

1^ 
2 


12^ 
20 

1* 

12* 
12* 

2 
12 
12i 
15 

1* 


ragua,  per  ton 


/; 


50 
25 
20 


other  kinds,  per  ton 
Earthen  and  glass  ware,  per  hhd. 
Figs,  per  drum 
Fish,  per  barrel    . 
Flax,  per  100  lbs      .         .         . 
Flax  seed,  per  tierce 
Flour,  and  other  clean  barrels     . 
Ginger,  per  100  lbs 
Grain  and  seed,  in  bulk,  per  bushel 
Hams,  per  hhd.    . 
Hay,  per  bale    .... 
Hemp,  loose,  per  ton 

//      in  bales,  per  100  lbs 
Hides,  each 
Hoops,  in  yard  or  wharf,  15  c.  per  1000 
Hops,  per  bale  .         .         .10 

Horns,  per  1000  .  .  .  .50 
Indigo,  per  seroon  ...  6 
per  case,  .         .         .         .12 


JL 
4 

5 

2* 

9 

3 

2i 

3. 

4 

15 

12* 

75 

2 

1 


n 


3 
4 

4 
10 

u 

IJ 

l2^ 

10 

1 
15 

1 
10 
10 

1* 
10 
10 
12 

1 

37* 

1:10 

15 

I 
4 
2 
7 
2 
2 

11 
10 

62^ 

f 

8 
37* 

5 
10 


Iron,  bloom,  or  pigs,  per  1000  lbs 

//     bars  .... 

//     hollow  ware 
Lard,  per  keg   .... 
Lead,  in  pigs,  per  1000  lbs 

//      in  sheets, 

//     in  oil  or  dry 
Leather,  per  side 
Lemons,  per  box 


Oronnd 

Floor. 

Cents. 

8 

10 
20 

1* 

.    7 

10 

15 


^f 


2 


Lumber,  in  yard,  per  1000  feet  12*  c. 
Madder,  per  hhd.  ...  25 
Molasses,  per  hhd.  .  .  .25 
//  per  tierce  .  .  .18 
//  per  barrel  .  .  .6 
Nails,  per  1000  lbs  .  .  .15 
Naval  stores,  per  barrel  .  .  6 
Oil  in  casks,  per  100  gallons  .  20 
Oil  in  baskets,  per  dozen        .  .       f 

Pepper  and  Pimento,  per  100  lbs       1* 
Plaster,  not  under  cover,  10  c.pr  ton. 
Provisions,  per  bbl.       .         .         .6 
Quicksilver,  per  flask         .         .         IJ 
Raisins,  per  keg   .         .         .         .1^ 
//       per  box        ...  * 

Rice,  per  tierce  .  .  .  .12 
Salt,  per  bushel         ...  f 

Saltpetre,  per  bag  .         .         .1^ 

Segars,  per  1000  ...  1 
Steel,  per  1000  lbs  .  .  .10 
Staves,  io  yard  or  wharf. 

for  pipes,  per  1000,  25  c. 

Sugar,  per  hhd 25 

Sugar,  per  bbl.  ...         5 

//      per  box,  under  500  lbs       .     6 
II      other  packages  100  lbs   .         1^ 
Tea,  per  chest       .         .         .         .4 
Tin,  block,  per  1000  lbs    .         .       10. 
//     sheet,  per  box        ...       5 
Tobacco,  Ohio  &  Maryland,  p.  hhd.     25 
//         other  kinds  .         .       30 

//         manufactured,  per  keg  3 

//         per  seroon        .         .         .4 
Wines  and  Liquors,  per  cask  of 

//  130  to  150  gallons  .  30 
//  less  than  130  gallons  .  .  25 
//     not  over  63  //  .       12  ^ 

//     not  over  35  k      .         .6 

//     not  over  20  #  .5 

//     per  dozen  bottles         .  .     1 


CcUarf 
or  lofts. 
CsifTa. 

6 

8 
15 

1 

5 

8 
11 
I 

20 
20 
14 

5 
10 

4 
15 


4 
1 
1 

I 
10 

i 

u 
1 

8 


20 
4 

4^ 

U 
3 

8 

I 
20 
22 

2 

3 

25 
20 
10 

5 

4 

.1 


All  nuTchandise  taken  on  storage  pays  for  one  month,  and  it  is  chargeable  with  another  month  if  it  remains  one  day  after 
this  time.    The  owners  of  the  goods  pay  all  charges  for  storing,  tiering  reasonably  high,  and  for  delivering. 

190 


DUFF'S  BOOK-KEEPING. 


RATES  OF  COMMISSION 

ESTABLISHED  BY  'IRE  CHAMBER  OF  COMMERCE  OF  THE  CITY  OF  PHILADELPHIA, 

WHEN  NO  SPECIAL  AGREEMENT  EXISTS, 

ON   INLAND    AND    FOREIGN    BUSINESS. 


PKR   CT. 


Merchandise,  for  selling,  on  the  total 

amount  (Foreign)       .         .         •         -5 
//         (Domestic)    .         •         •         -  ^l 

for  purcbasing  and  shipping,  or  accept- 
ing bills  for  purchases,  on  cost  and 
charges  .  .  .  •  •  2| 

for  receiving  and  forwarding,ow  the  value     J 

on  responsibilities  incurred  for  same    .  2^ 
Vessels,  for  purchasing  or  selling,  07? 

the  gross  amount     .         .         .         •  2\ 

for  chartering  to  proceed  to  another  port 
or  for  procuring  freight  .         .  2| 

for  collecting  freight  or  general  ave- 
rage, on  the  amount  collected   .  .2^ 

paying  for  repairs,  outfits,  or  disburse- 
ments, 071  the  total  amount       .  .  2i 
Marine  Insurance,  for  effecting,  when 
the  premium  does  not  exceed  10  "^ 
ct.,  on  the  amount  covered        .         .     h 

if  the  premium  exceed  10  "^  ct,  on  the 
amount  of  premium        .         ...  5 

settling  and  collecting  losses  without 
litigation,  on  the  amount  collected    . 
Fire  Insurance,  for  effecting,  on  the 
amount  of  premium        .  .  .5 

for  adjusting  and  collecti;;g  losses,  on 
the  amount  collected         .         .         .1 


PEK   CT 


Inland  and  Foreign  Bills  of  Ex- 
change, endorsing  or  drawing  and 
negotiating,  in  every  case,  on  the  pro- 
ceeds     .  .  .  .  •  •  2i 
for  purchasing  without  endorsing,  on 

cost  and  charges     .  .         •  •     f 

for  selling,  on  the  net  proceeds     .         .     i 
for  collecting,  on  the  amount  collected     i 
for  paying  over,  on  the  amount  paid    .     \ 
for  remitting,  on  the  amount  remitted        \ 
Specie  and  Bank  Notes,  Drafts  and 
Public  Stocks,  for  selling,  on  the 
proceeds  .  .  .  •  -2 

for  purchasing,  on  cost  and  charges      .     i 
Public  Stock,  for  collecting  dividends, 
on  the  amount  collected  .         .     i 

Advancing   money,   or   for   accepting 
bills,  in  all  cases  on  the  amount  ad- 
vanced or  accepted  .         .         .  2i 
Collecting  claims  on  insolvent  estates 
or  litigated  or  disputed  accounts,  on 
the  amount  recovered       .         .         .5 
Receiving  and  Paying  all  moneys  from 
which  no  other  commission  is  rec'd    1 
Receiving         '/          ....     I 
Paying              '/           .  .         .         .     ^ 
Guarantee,  in  every  case     .         .         -21 


All  consignments  of  merchandise  withdrawn  or  re-shipped  are  subject  to  full  commission 
to  the  extent  of  all  advances  and  responsibilities  incurred,  and  to  half  commission  on  the 
current  value  of  remainder. 

For  selling  merchandise  previously  consigned  to  another  house,  but  withdrawn  from  them, 
when  no  responsibilities  are  incurred,  only  half  commission  is  to  be  charged  upon  the  cur- 
rent value,  such  value  to  be  determined  in  all  cases  by  the  certificates  of  two  competent 
merchants  or  brokers. 

Bills  remitted  for  collection  under  protest  for  non-acceptance  or  non-payment  are  subject 
to  half  commission  only. 

The  above  commissions  are  exclusive  of  storage,  brokerage,  guarantee,  and  all  other  ex- 
penses incurred. 

Unless  he  order  Insurance,  the  risk  of  loss  by  fire,  robbery,  and  all  other  unavoidable 
risk,  is  with  the  owner  of  the  consignment,  ordinary  care  being  taken  by  the  consignee  to 
secure  it. 


191 


< 


I 


/ 


DUFF'S  BOOK-KEEPING. 

RATES  OF  COMMISSION 

ESTABLISHED  BY  THE  CHAMBER  OF  COMMERCE  OF  THE  CITY  OF  NEW  YORK, 

WHEN  NO  SPECIAL  AGREEMENT  EXISTS  TO  THE  CONTRARY. 

\_ExtTacted  from  the  Minutes,  Vol.  II.,  pp.  SO  and  30. '\ 


FOR   INLAND    BUSINESS. 


PER  CT. 


Merchandise,  for  buying,  selling,  ship- 
ping, or  accepting  for  purchases 
without  funds  in  hand  to  cover  the 


2J 
1 


* 


h 


same       ..*••• 
Stocks,  for  buying  or  selling 
Specie,  i>  h  .        . 

Bills  of  Exchange,  selling  without  en- 
dorsement     ..... 

Bank  Notes,  or  Drafts,  uncurrent,  for 
selling  ..... 

Bills  of  ExcHANGE,endorsing  and  selling  2^ 

Vessels,  purchasing  or  selling      .         .  2^ 

chartering,  to  take  in  cargo  at  other 

ports      ...... 

procuring  freight        .... 

collecting  freight         .... 

outfits,  repairs,  and  disbursements 
collecting  general  average 


2* 
2i^ 

2* 
2* 
2i 


on 


Kemittances  in  Bills,  in  every  case 
Receiving  and  forwarding  goods, 

the  value  of  the  same 
when  the  same  is  entered  for  duty  or 

debenture       ..... 
Collecting  dividends  on  stocks     . 
Collecting  Bills,  and  paying  over  the 

amount  ..... 

Receiving  and  Paying  money  upon 

which  no  other  commission  has  been 

received         ..... 
Collecting   and   Settling  Insurance 

losses     ....... 

Marine  Insurance,  for  effecting,  in  every 

case'  where  the  premium   does  not 

exceed  10  "^  ct.,  on  the  amt.  covered 
when  the  premium  exceeds  10  "^  cent., 

on  the  amount  of  premium 


PER  CT. 


^ 


i 


2i 


FOR   FOREIGN    BUSINESS. 


PER   CT. 


Merchandise,  for  selling 

for  buying  and  shipping  with  funds  in 
hand,  on  the  total  amount  of  cost  and 
charges  .         .         .         .  .  2J 

Stocks,  for  purchasing  or  selling  .         .  1 
Specie,  '/  w        .        .     § 

Bills,  Drawing  or  Endorsing,  in  every 
case       .         .         .         .         .         .2^ 

Vessels,  purchasing  or  selling      .         .  2J 
for  procuring  freight  .         .         .5 

collecting  freight  on  general  average  2\ 
repairs,  outfits,  or  disbursements,  with 
funds  in  hand         .         .         .         .  2i 

Marine  lNSURANCE,for  efiecting,  in  every 
case  where  the  premium  does  not 
exceed  10  "^  cent.,  on  the  amount 
covered  .....* 


PER   CT. 


Marine  lNSURANCE,for  efiecting,  in  every 
case  where  the  premium  exceeds  10 
"^  cent.,  on  the  amount  of  livemmm   5 

Dividends  on  Stock,  for  collecting      .     \ 

Litigated  or  delayed  accounts,  col- 
lecting .        .        .        .        .        .5 

Insurance  Losses,  adjusting  and  col- 
lecting .        .        .        .        .        .  2J 

Receiving  and  paying  money  upon 
which  no  other  comm.  is  charged     .  1 

Remittances  in  Bills,  in  every  case  .     \ 

Landing  and  re-shipping  Merchandise 
from  vessels  in  distress,  on  the  value  2J 

Receiving  and  forwarding  Merchan- 
dise entered  at  the  Custom-House,  on 
the  value         .         .         .         .         .1 
on  all  responsibilities  incurred  for  the 
same      .....  2^ 


The  above  comnjissions  are  without  guarantee  of  debts  for  sales  on  time,  brokerage, 
storage,  and  all  other  charges  incurred.  In  the  absence  of  instructions  for  insurance,  the 
risk  of  loss  by  fire  is  always  borne  by  the  proprietor,  as  also  the  risk  of  loss  by  theft,  rob- 
bery, or  any  other  unavoidable  accident,  provided  ordinary  care  be  taken  for  the  security  of 
the  property.  Bills  remitted  for  collection  and  returned  under  protest  for  non-acceptance, 
or  non-payment,  are  subject  to  the  same  commission  as  when  duly  honored.  All  consign- 
ments of  merchandise  withdrawn  or  re-shipped  are  subject  to  full  commission,  to  the  extent 
of  the  advances  or  responsibilities  incurred,  and  to  half  commission  on  the  balance  of  value. 

192 


DUFF'S  BOOK-KEEPING. 


RATES  OF  STORAGE 


chargeable  monthly,  established  by  the  chamber  of  commerce  of  the 

CITY  OF  new  YORK,  WHEN  NO   PRIVATE   AGREEMENT  EXISTS. 

{Extracted  from  the  Minutes,  Vol.  II.,  p.  31  to  34,'] 

CENTS. 


Almonds  in  packages,  per  cwt.     .         .     6 
Alum  in  bags  or  casks,  per  ton    .         .  40 
Ashes,  pot  or  pearl,  per  bbl.         .         .     8 
Beef  do.     .         .         .6 

Bottles,  quart,  in  crates  or  hampers,  per 
gross   .         .         .         .         .         .8 

Bark,  Quercitron,  in  casks,  per  ton  .  60 
Bagging,  in  bales  or  loose,  per  piece  .  3 
Butter,  in  firkins  of  60  K),  per  firkin  .  2 
Cocoa,  in  bags  or  casks,  per  cwt.  .     2^ 

Chocolate,  in  50  lb  boxes,  per  box  .  2 
Candles,  in  50  to  60  lb  boxes,  per  box  2 
Coffee,  in  casks,  per  cwt.      .         .         .2^ 

do.  in  bags,  per  cwt.  .  .  -2 
Copperas,  in  casks,  per  ton  .  40 

Copper,  in  pigs,  do.     .         .  20 

do.      in  sheets  or  bolts,    do.     .     .    .  30 

do.  braziers'  bottoms,  do.  .  .  75 
Cordage  .  .  .  do.  .  .  50 
Cassia,  in  boxes  or  bags,  per  cwt.  .  10 

Cotton,  American,  in  square  bales  300  lbs  12  J 

do.  do.  round  bales  . 

do.    E.  I.,  in  bales,  per  300  lbs 
Cheese,  in  boxes  or  loose,  per  cwt. 
Duck,  heavy,  per  bolt 
do.    Ravens,  or  Russia  sheeting,  per 
piece         .         .         .         •     • 
Dry  goods,  in  bales  or  boxes,  per  40 

cubic  feet    .        . 
Earthenware,  in  crates  of  25  to  30  ft.   . 
do.  in  hhds.  of  40  to  50  ft.    . 

Fish,  pickled,  per  bbl. 
do.    dry,  in  boxes  or  casks,  per  cwt.    . 
do.    in  bulk,  per  cwt. 
Figs,  in  frails  or  drums,  per  cwt. 
Flax,  per  ton       ..... 
Flax  seed  or  other  articles,  in  casks  of 
7  bushels     ..... 
Flour,  or  other  dry  articles,  per  barrel 
Grain,  in  bulk,  per  bushel   . 
Ginger,  in  bags,  per  cwt. 
Glass,  window,  in  50  feet  boxes    . 
Hemp,  per  ton    ..... 
Hides,  dried  or  salted,  per  hide    . 
Hardware,  in  casks  or  cases,  per  40  feet 

cubic  . 
Indigo,  in  boxes  or  seroons 
Iron,  in  bar  or  bolts,  per  ton 


16 
9 
3 

n 


40 
15 

30 
6 
4 

2^ 
2J 
60 

10 
4 
1 
2 

75 

n 

40 

4 

20 


cEsm. 


do.    in  hoops,  sheets,  or  nail  rods,  per  ton  30 


Liquors,  in  puncheons  of  120  galls.,  per 
puncheon     ..... 
Liquors,  in  quarter  casks 
do.      in  pipes  120  gallons 
do.      bottled  in  casks  or  boxes,  per 
dozen  .... 

Leather,  per  side         .         .         .         • 
Lard,  in  60  lb  firkins  .... 
Lead,  in  sheets  or  pigs,  per  ton     . 
do.    ground  in  oil  or  dry,  per  ton 
Molasses,  in  110  gallon  hhds. 
Other  casks  in  proportion  to  their  size. 
Nails,  in  casks,  per  cwt. 
Oil,  in  110  gallon  casks  or  hhds. 
do.  in  30  flask  chests,  per  chest  . 
do.  in  baskets,  per  dozen  bottles 
Paints,  in  kegs  or  casks,  per  ton  . 
Pork,  per  barrel  .... 

Pepper,  in  bags,  per  cwt. 
Pimento,  in  casks  or  bags,  per  cwt. 
Rice,  in  tierces,  per  tierce    . 

do.    in  half  tierces,  per  half  tierce 
Rags,  in  bales,  per  cwt. 
Raisins,  Malaga,  in  casks     . 
do.  in  boxes     . 

do.      other  packages,  per  cwt. 
Saltpetre,  in  bags,  per  cwt.  . 
do.        in  casks,  per  cwt. 
Salt,  in  kegs  or  bulk,  per  bushel  . 
Shot,  in  casks,  per  ton 
Soap,  in  50  or  60  R)  boxes,  per  box 
Steel,  in  bars  or  bundles,  per  ton 

do.    in  boxes  or  tubs,  per  ton 
Sugar,  in  boxes  or  bags,  per  cwt. 
do.     in  casks,  per  cwt. 
do.     refined  in  p'kges  or  casks,  per  cwt. 
Tallow,  in  casks  or  other  packages,  do. 
Tea,  Bohea,  in  whole  chests,  per  chest 
do.         in  half  chests    . 
do.         green  or  black,  in  qr.  chests 
do.         other  size  boxes  in  proportion 
Tin,  block,  per  ton       .... 
do.  in  the  usual  sized  boxes,  per  box  . 
Tobacco,  in  hhds.,  per  hhd. 

do.       in  bales  or  seroons,  per  cwt.    . 
do.       manufactured,  in  100  lb  kegs 
Woods  for  dyeing,  under  cover,  per  ton 
do.  in  yards,  per  ton 


Whiting,  in  hhds.,  per  ton 


30 

^\ 
30 

li 

1 

2 
20 
40 
30 

o 

30 
4 

li 
40 

6 

2J 

2* 
12 

8 

6 

3 

1 

2 

2 

2J 

1 
37* 

2 
30 
40 

2 

2i 

3 

2 
15 

8 

4} 

20 

U 
371 

4 

2 
50 
25 
37  i 


to  th« 
turn- 
taken  oat 


DUFF'S  BOOK-KEEPING. 


<• 


THE  QUANTITY  OF  GOODS  TAKEN  FOR  A  TON  IN 
-  FREIGHTING  VESSELS. 

Extract  from  the  By-Laws  of  the  Chamber  of  CoMxMerce  of  the  City  of 

New  York. 

Resolved,  That  when  vessels  are  freighted  by  the  ton,  and  no  special  agreement  is  made 
between  the  owner  of  the  vessel  and  the  freighter  of  the  goods,  respecting  the  proportion 
of  tonnage,  which  each  particular  article  shall  be  computed  at,  the  following  regulations 
shall  be  the  standard  of  computation. 

That  the  articles,  the  bulk  of  which  shall  compose  a  ton,  to  equal  a  ton  of  the  heavy 
materials,  shall  be  in  weight  as  follows ; 


1568 

1830 

1120 

1307 

952 

1110 

8 

6 

20 

16 

12 

6 

7 

8 

200 

22 

36 
36 
31 
29 
40 

1 
10 

8 
10 

8 


lbs  of  Coffee  in  casks, 
lbs  of  Coffee  in  bags, 
lbs  of  Cocoa  in  casks, 
lbs  of  Cocoa  in  bags, 
lbs  of  Pimento  in  casks, 
lbs  of  Pimento  in  bags, 
barrels  Flour,  196  lbs  each. 

do.      Beef,  Pork,  Tallow,  Pickled  Fish,  Pitch,  Tar,  and  Turpentine, 
cwt.  Pig  and  Bar  Iron,  Pot  Ashes,  Sugar,  Logwood,  and  all  heavy  Dyewoods,  Rice, 

Honey,  Copper  Ore,  and  all  other  heavy  goods, 
cwt.  Coffee,  Cocoa,  and  Dried  Fish  in  bulk, 
cwt.  Dried  Codfish,  in  casks  of  all  sizes, 
cwt.  Ship  Bread,  in  casks, 
cwt.         do.  in  bags, 

cwt.         do.  in  bulk, 

gallons  Wine  measure  (on  the  full  capacity  of  the  cask)  of  Oil,  Wine,  Brandy,  and 

all  other  Liquors, 
bushels  of  Grain,  Peas,  or  Beans,  in  casks. 

'/  //  //  in  bulk. 

European  Salt,  in  bulk. 
Salt  from  the  West  Indies. 

//  Sea  Coal, 

feet  (cubic)  of  Mahogany,  Square  Timber,  Oak  Timber,  Oak  Plank,  Pine,  and  other 

Boards,  Beaver,  Furs,  Peltry,  Beeswax,  Cotton,  Wool,  and  Bale  Goods  of  all  kinds, 
hhd.  of  Tobacco, 
cwt.  Dried  Hides, 
cwt.  China  Raw  Silk, 
cwt.  Net  Bohea  Tea. 
cwt.  Green  Teas. 

194 


DUFFS  BOOK-KEEPING. 


PART  III. 


19S 


I 


DUFFS  BOOK-KEEPING. 


PART  III. 


COMMERCIAL  CALCULATIONS, 


COMPREHENDING  ABBREVIATED  METHODS  OP  PRACTICAL  COMPUTATION,  SETTLEMENT 
OF  ACCOUNTS,  &c.  NOT  FOUND  IN  COMMON  ARITHMETICS. 


ADDITION. 

Young  accountants,  though  good  arithmeticians,  often  experience  difficulty  in  addinir  up 

long  columns  of  figures  with  certainty.     Such  persons  will  find  the  following  method  useful : 

Set  down  upon  waste  paper  the  sum  of  each  column  under  each  other,  addinir  downwards 

for  proof,  and  if  found  correct,  point  oflf  the  right  hand  figures,  carrying  the  left  to  the  next 

column,  thus: 

4796.27  4.1 

9832.39  37 

325.41  1 9 

9800.99  04 

4723.78  3:5 

70.87  29 

Mark  off"  the  two  upper  places  in  the  column  of  amounts,  for  cents.  Read  the  figures 
marked  off  at  the  right  upwards — 29549.71,  the  total  product.  Any  persevering  student 
can  in  a  few  weeks  attain  a  high  degree  of  proficiency  and  accuracy  in  addition  by  writing 
out  long  columns  of  figures  upon  slips  of  paper,  say  sixty  or  seventy  figures  in  length,  and 
practice  adding  them  for  half  an  hour,  daily.  By  this  means  of  regular  d;iily  exercise,  the 
student  can  ultimately  attain  such  a  facility  of  addition  as  to  enable  him  to  add  several  col- 
umns of  figures  at  once.  Take  the  above  four  columns  of  dollars,  and  carrying  3  from  the 
cents  makes  the  first  amount  read  73 ;  73  and  4723  are  4796 ;  4796  and  9800  are  14596. 
and  so  on  to  the  head  of  the  column.  The  student  must  practice  first  upon  short  columns, 
such  as  will  require  but  little  carrying.  As  he  uses  longer  columns,  carrying  becomes  un- 
avoidable, but  the  eye  soon  becomes  accustomed  to  the  reiding  process  in  figures  as  well  aa 
letters.     It  only  requires  time  and  application  to  acquire  it  in  either. 

197 


DUFF'S  BOOK-KEEPING. 


ON  COMMERCIAL  CALCULATIONS.— PART  HI. 


I 


PBOFIT  AND  LOSS. 

Under  this  head  we  shall  confine  ourselves  to  exercises  upon  the  rule  for  determining  the 
per  centage  gain  or  loss  upon  a  merchandise  account.     See  pp.  33  and  36. 

Example  1.     Purchases  of  merchandise  for  $11400.25.  Sales  effected  in  seventy-three 
days,  69400.84.     On  hand,  83400.84.     Kequired  the  total  gain,  the  average  daily  sales, 
the  average  gain  per  cent,  and  the  average  daily  profits. 

\nswer.     Total  gain         ......  $1401.43. 

Average  daily  sales        *         .         .         .  128.78,  nearly. 

Average  gain  per  cent 17^,  nearly. 

Average  daily  profits     .         .         .         .  19.19-f-. 

Ex.  2.  Suppose  the  purchases  $12405.  Sales  effected  in  150  days,  $7609.  On  hand, 
$6800.  Required  the  total  gain,  the  average  gain  per  cent,  the  average  daily  sales,  and  the 
average  daily  gains. 

Ans.  Total  gain.  $2004.  Average  gain  per  cent.  $35-j^jW.  Average  daily  sales, 
$50.72f .     Average  daily  profits,  $13.36. 

Ex.  3.  Purchased,  $8000.  Sold  in  90  days,  $5000.  Amount  on  hand,  $4000.  Re- 
quired the  daily  average  sales,  the  daily  average  profits,  the  total  gain,  and  the  gain  per 
cent. 

Ans.  Total  gain,  $1000.  Daily  sales,  $55.55|.  Daily  profits,  $11,111^  and  25  per 
cent.  gain. 

Ex.  4.  Purchased,  $4226.  Sold  in  60  days,  $1585.  Remaining  on  hand,  $3202. 
Required  the  daily  average  sales,  the  total  gain,  the  daily  gain,  and  the  gain  per  cent. 

Ans.  Total  gain,  $561.  Daily  gain,  $9.35.  Daily  sales,  $26,416.  Average  gain, 
54|5J  per  cent. 

Ex.  5.  Purchases,  $6895.  Sold  in  36  days,  $4011.  On  hand,  $2223.  Required  the 
total  gain  or  loss,  the  daily  sales,  the  daily  gain  or  loss,  and  the  gain  or  loss  per  cent. 

Ans.     Total  loss,  $661.    Daily  sales,  $11 1.41i.    Daily  loss,  $18.36^,  and  14 -{-percent,  loss. 

The  same  rule  gives  the  per  centage  gain  or  loss  upon  any  amount  of  sales. 

Ex.  6.  Bought  candles  at  13  cents  and  sold  them  at  16  cents.  Required  the  gain  per 
cent.  Ans.     23^3  per  cent. 

Ex.  7.  Bought  sugar  at  5J  cents  *^  lb  and  sold  it  at  7i  cents.  Required  the  gain  per 
cent.  Ans.     36j'*j  per  cent. 

Ex.  8.  Bought  molasses  at  25  cents  *^  gal.  and  sold  it  for  23 1  cents.  Required  the  loss 
per  cent.  Ans.     5  per  cent, 

Ex.  9.     Bought  cloth  at  §2.622  and  sold  it  at  $3.10.     Required  the  gain  per  cent. 

Ans.     ISj^y  per  cent. 

Ex.  10.  Sold  merchandise  at  10  per  cent,  advance  on  the  first  cost,  from  which  I  deduct 
5  per  cent,  from  the  face  of  the  invoice  for  prompt  payment.  Required  the  net  per  centage 
gain.  Ans.     4^  per  cent. 

Ex.  11.  Sold  merchandise  at  30  per  cent,  advance ;  from  the  face  of  the  invoice  deducted 
20  per  cent.     Required  the  net  per  centage  gain.  Ans.     4  per  cent. 

Ex.  12.  Sold  merchandise  at  50  per  cent,  advance  on  the  prime  cost.  Allowed  the 
retailer  40  per  cent,  discount  on  the  face  of  the  invoice.  What  is  my  net  per  centage,  gain 
or  loss  ?  Ans.     10  per  cent.  loss. 

Ex.  13.  A  manufacturer  sold  his  productions  by  retail  at  25  per  cent,  advance  on  the 
cost  of  production.  He  gave  up  the  retail  business,  and  agreed  to  furnish  retailers  at  20 
per  cent,  discount  upon  his  retail  prices.     Required  his  net  per  centage  gain. 

Ans.     Nothing. 

Note. — The  effect  of  discounts  in  such  cases  as  the  above  is  often  overlooked  by  the  inexperienced.    The  results  of  these 
esampies  6bu'Hi  the  practical  importance  of  understanding  the  matter. 

-tno 


TO  FIND  COMMISSION  AND  BE0KEEA6E. 

RULE. — For  1  per  cent,  point  off  two  places,  and  for  10  per  cent,  point  off  one  place,  to 
the  right  of  the  given  sum.     Take  aliquot  parts  for  the  intermediate  rates. 

Ex.  1.     Required  I  per  cent,  brokerage  on  $1268. 


Ex.2, 
Ex.  3. 
Ex.4. 
Ex.5. 
Ex.  6. 
Ex.  7. 
Ex.8. 
Ex.9. 


// 
ff 

II 
II 
If 
II 
It 
It 


1 

4 

I 
1 

li 

5 

7i 
10 


It  It               1842. 

tt  n                 850. 

u  .                 899, 
u        commission  on  1668.88. 

It  H              248.44. 

//  n            1499.90. 

It  ff              664.40. 

//  n              779.49. 


Ans. 

$3.17. 

Ans. 

9.21. 

Ans. 

6.375. 

Ans. 

8.99. 

Ans. 

20.861 

Ans. 

6.211 

Ans. 

74.995 

Ans. 

49.83. 

Ans. 

77.949 

Ex.  10.  Received  $5000  to  invest  in  a  bill  on  New  Orleans,  which  I  purchase  at  par. 
Required  the  amount  of  the  bill,  and  also  my  brokerage,  which  is  ^  per  cent,  on  the  bill. 

Ans.     Bill,  $4975.124.     Brokerage,  $24,876. 

Ex.  11.     Received  $3000  to  invest  in  a  bill,  which  I  procure  at  2  per  cent,  discount 
Required  the  amount  of  the  bill,  also  my  brokerage,  which  is  \  per  cent,  on  the  face  of  the 
bill.  Ans.     Bill,  $3045.68+.     Brokerage,  $15.23,  nearly. 

Ex.  12.  Net  proceeds  of  J.  Taylor  &  Co.'s  sales,  $2639.  They  desire  the  amount  in- 
vested in  a  bill  on  New  Orleans,  and  remitted  them.  Bills  are  1  per  cent,  premium.  My 
brokerage  is  i  per  cent,  on  the  investment.     Required  the  amount  of  the  bill. 

Ans.     82600. 

Ex.  13.  Remitted  my  correspondent  in  Mobile,  $6000,  to  be  invested  in  cotton.  His 
commission  is  5  per  cent,  on  the  investment.  Required  the  amount  of  the  invoice  and  his 
commission.  Ans.     Invoice,  $5714.29.     Commission,  $285.71. 

Ex,  14.  Received  from  Gr.  Page,  $9000,  to  be  invested  in  hops.  My  commission  for 
purchasing  is  2  J  per  cent,  on  the  investment.  Required  the  amount  of  my  invoice  and  my 
commission.  Ans.     Invoice.  $8780,49.     Commission,  $219.51. 


ON   INTEEEST. 

The  legal  rate  of  interest  in  Pennsylvania,  New  Jersey,  Delaware,  Maryland,  A'irgiaia^ 
North  Carolina,  Tennessee,  Kentucky,  Ohio,  Indiana,  Illinois,  Missouri,  Arkansas,  District 
of  Columbia,  and  on  all  debts  due  the  United  States,  is  6  per  cent. 

In  New  York,  Michigan,  Wisconsin,  Iowa,  and  South  Carolina,  it  is  7  per  cent. 

In  Georgia,  Alabama,  Mississippi,  Texas,  and  Florida,  it  is  8  per  cent. 

In  Louisiana  it  is  5  per  cent. 

In  England  and  France,  5  per  cent. 

In  Canada,  Nova  Scotia,  and  Ireland,  it  is  6  per  cent. 

When  the  rate  of  interest  is  above  or  below  6  per  cent,,  first  find  the  interest  at  6  per 
cent.,  then  add  or  subtract  the  difference,  viz. :  For  5  per  cent,  deduct  i,  for  7  per  cent, 
add  i,  and  for  8  per  cent,  add  i  of  the  interest  found  at  6  per  cent, 

TO   FIND   THE   INTEREST   AT  SIX  PER  CENT.  FOR  MONTHS. 

RULE  I. — Remove  the  decimal  point  two  places  to  the  left  in  the  principal,  then  multi- 
ply by  half  the  number  of  months.     The  product  is  the  interest  required. 

199 


DUFF'S  BOOK-KEEPING. 


TO  FIND   THE   INTEREST   FOR  DAYS. 


RULE  II.* — For  60  days,  point  off  two  places  in  the  principal,  and  it  becomes  the  in- 
terest. For  6  days,  point  off  three  places,  and  the  principal  becomes  the  interest.  For  5, 
10,  15,  20,  25,  30,  &c.  days,  take  aliquot  parts  of  the  interest  found  as  above  for  60  days. 
For  other  numbers,  multiply  the  interest  found  as  above  for  6  days  by  i  the  given  number 
of  days.     The  product  is  the  answer. 


Example  1. 

Required  the 

int 

// 

2. 

// 

II 

» 

3. 

It 

0 

» 

4. 

It 

0 

» 

5. 

n 

w 

K 

6. 

n 

0 

0 

7. 

It 

0 

tf 

8. 

II 

0 

a 

9. 

n 

0 

H 

10. 

It 

0 

n 

11. 

It 

0 

B 

12. 

It 

0 

n 

13. 

It 

II 

w 

14. 

II 

0 

» 

15. 

0 

0 

w 

16. 

0 

0 

w 

17. 

II 

0 

w 

18. 

II 

0 

w 

19. 

II 

0 

It 

20. 

II 

0 

tt 

21. 

If 

n 

» 

22. 

u 

II 

M 

23. 

II 

0 

tt 

24. 

0 

0 

» 

25. 

0 

0 

If 

26. 

n 

0 

H 

27. 

0 

0 

H 

28. 

0 

0 

H 

29. 

0 

0 

w 

30. 

0 

0 

» 

31. 

0 

0 

It 

32. 

0 

0 

n 

33. 

0 

0 

u 

34. 

II 

0 

It 

35. 

0 

0 

n 

36. 

0 

0 

It 

37. 

0 

0 

It 

38. 

0 

0 

It 

39. 

0 

0 

It 

40. 

1. 

0 

It 

41. 

0 

0 

n 

42. 

0 

0 

w 

43. 

ti 

0 

229.70 
664.40 
712.60 
964.30 
667.60 
1267.70 
1461.12 
48.48 
194.14 
3344.20 
1616.60 
1718.80 
2120.40 
412.12 
1886.18 
1854.54 
1794.92 
1763.30 
2788.80 
5. 
7. 
180.48 
284.60 
363.24 
1216.40 
1890.90 
2412.64 
1518.90 
1920.60 
1266.48 
2424.66 
1098.48 
726.24 
960.48 
1566.96 
1399.97 
1224.12 
369.18 
96.84 
636.69 
224.42 
846.60 


for  1  month. 

2  mos. 

3 

4 

5 

6 

7 

8 

9 
10 
11 
12 
16 

2  years  and  1  mo. 

2        //         3 


2  // 

3  I, 

4  // 
4  // 
4        I, 

60  days. 

6 

5 
10 
11 
<15 
20 
22 
25 
30 
33 
35 
40 
44 
50 
63 
66 

1 

2 

7 

8 
12 
13 


9 
8 
5 
8 
10 


Ans. 
II 

0 

II 
II 

It 
If 

n 
0 
II 
II 
II 
II 
II 
It 
It 
II 
It 
If 
0 
0 
II 
II 
II 
n 
0 
0 
n 
n 
II 
If 
II 
0 
0 

0 

II 
II 
0 
0 
II 
II 
II 
0 


$2.24t 
2.297 
9.966 
14.25t 
24.107t 
20.028 
44.369t 
58.444t 
2.181t 
9.707 
183.931 
96.996 
137.504 
265.05 
55.636t 
311.219t 
407.998t 

475.653t 
493.724 

808.752 
.05 
.007 

.151 
.391 

.665t 
3.041 
6.303 
8.846t 
6.328t 
9.603 
6.965t 
14.l43t 
7.323t 
5.325t 
8.004 
16.453t 
15.399t 
.204t 
.123} 
.112t 
.848t 
.448t 
1.834t 


ned  by  judicial  decisions,  and  it  is  almost  universally 


*  This  Rule,  though  admitted  to  be  slightly  inaccurate,  has  been  sustai 
nsod  by  merchants  in  this  country.    It  is  based  on  the  supposition  of  the  year  being  divided  into  twelve  equal  months  of  .30 
daya  each— 360  days.    It  therefore  gives  the  interest  j^s  =  jj  part  too  much. 

200 


Example  44. 

//  45. 

"  46. 

/'  47. 

//  48. 

'/  49. 

/'  50. 


ON  COMMERCIAL  CALCULATIOJS^S.— PART  III. 

Ans. 


Required  the  interest  of  $960.84  for  17  days 

1236.18   //   19 

1122.22   //  27 

1860.48   //   29 

246.24  //   37 


II 
It 

N 
If 
ft 
II 


0 

0 
II 
0 


«  321.21   //  39 

9666.       II  40 


II 
II 
11 
If 
If 
II 


0 
II 
0 

0 
0 
0 


82.722-f- 
3.914-j- 
5.049-f- 
8.992 -f- 
1.518-j- 
2.087+ 

64.44 


Februafy  *27.'^  "'''  '"'  "^"^'^  ^'"""''^  ^^'  ^^^^'  ®  ^^  ^^^''     ^^^"^^^^  *^«  unexpired  time, 
Ex.  52.     A  note  dated  March  30,  @  90  days.     Required  the  unexpirtd^'Le^  Mt723. 

UuJ!:     ^  ""'"  ^'''^  ^^''  ^'''^'  ®  ^  "^^^^^-     ^«^-^^d  '^^  "°4rred  tfme^oTihe 

February  1,  1^85^  '''"'  ^''''"  '''  '''''  ®  '  "^"^^^^     ^^^"^^  thfunexpiredTme, 
Ex.  55^  '  A  note  for  $1368.72,  dated  10th  September,  1852,  having  12^monthfto'^ruo  is 
discounted  on  the  21st  October.     Required  the  interest  in  the  unexpired  tTme.  ' 


Due 


OPERATION. 

Tear.  Month. 

1853     .     .       9     .     . 
1852     .     .     10     .     . 


Day. 

13 
21 


10     .     .     23  unexpired  time.* 

Ans.     Interest  on  the  same,  S73.682-f-. 

Ex.  56      A  note  for  $360,  dated  May  31,  @  6  months,  is  discounted  September  14 
Required  the  unexpired  time  and  interest  for  th^  time.  (September  14. 

Ex,  57     A  note  for  1960.96,  dated  30th  Juot  @  9oX'is  dlLlnlTS'teTr  9 
Required  the  unexpired  time  and  the  discount.  i^^^ounrea  September  9. 

Ans.     Unexpired  time,  22  days.     Discount,  $3.5234-. 

It  now  remains  to  notice  what  is  called  Partial  Pavments— wher^  nnf^Q  nr  \.r.r.A  -j 

by  ..stallmentB.     There  are  two  rules  for  computing'thHaterSt  such  cl^""''  ""  f"^ 

thp^n  iTti!^''^'"'?'?  KULE.-Find  the  amount  of  the  principal  at  the  date  of  settlement  • 

s  s,^trr.£;s.&r"Ar^t=tii  ■air-'  "'"■-  •=- 

This  is  the.  principle  upon  which  Morris'  Account  Current  is  settled.     (Page  114.) 

II.  The  Legal  Rule.— Compute  the  interest  on  the  principal  to  the  time  of  th^  fi,«* 

amC?ofT      y^y'^r'T'-  ''^''^  '"S**"'  "^''^^  the  interest  then  ir    From  the 
amount  of  the  principal  and  interest  subtract  the  payment.     The  remainder  i^thT 
principal.     Proceed  in  the  same  manner  with  all  subsequent  payments  '^'  "*' 

The  Courts  of  the  United  States  and  most  of  the  State  Courts  have  adopted  this  rul^ 

of^.1  'T      °n'""?'"'"""'°*'  '"  Arithmetic  will  have  any  difficultTrnapplyt/etW 
tW  wni  ntf"     9"7»'ject  m  introducing  them  here  is  to  show  the  widely  d'Et%e^uL 

!^^t^tds^:ii^m*^r;Se^  ^^'^"'^  transaction,  which  ,^^ 


*  See  note  on  page  200. 

201 


DUFF'S  BOOK-KEEPING. 

Bond  for  $900  on  interest  at  6  per  cent,  commencing  May  8, 1838,  was  settled  Sept.  8. 1852. 

Payments  as  follows,  viz : 

8,  1839 
4,  1839     . 

9,  1840 
10,  1840     . 

15,  1841 
25,  1841     . 
12,  1841 

2,  1841     . 

19,  1841 
1,  1841     . 

1,  1841 
7,  1841     . 

16,  1842 
24,  1842     . 
27,  1845 

6,  1846     . 

14,  1846 

20,  1847     . 

2,  1848 
4,  1848     . 
4, 1848 

30, 1848     . 

15,  1849 
1,  1850     . 

7,  1852 

Upon  computing  the  interest  on  the  ahove  transaction  by  the  Me^«/fti\I^"l«  '^}ZIV 
balance  due  on  the  mortgage  of  $88.07.     By  the  Legal  Rule  we  find  the  balance  $266.37, 
making  a  difference  in  the  settlement  of  this  $900  mortgage  of  $178.30.     It  niust  be  ad- 
mitted! however,  that  the  annual  rests  usually  made  by  merchants  in  settling  accounts  would 
have  made  a  difference  in  favor  of  the  creditor ;  but  as  these  rests  were  not  made  at  tte  proper 
time  we  could  not  go  back  into  the  account  and  make  them  afterwards.     It  is  to  be  observed, 
however,  that  the  Legal  Rule,  in  this  and  all  similar  cases,  gives  the  creditor  compound  m- 
tercBt  in  its  most  exacting  form,  as  every  time  the  debtor  makes  a  payment  the  interest  is 
compounded  against  him.     I  could  have  adduced  many  other  examples  to  show  in  the  most 
strTking  manner,  the  difference  resulting  from  these  different  methods  of  computing  interest 
-to  show  that  the  difference  is  always  increased  in  an  accelerated  ratio  as  the  payments  are 
multiplied  or  the  time  prolonged.     In  the  case  of  Clancert^  vs.  Latouche  1  Ball  &  Beat 
420  the  difference  resulting  from  the  different  methods  of  computing  interest  was  about 
£24000  sterling.     It  may  be  asked  what  remedy  is  to  be  proposed  in  the  confusion  and  un- 
certainty  that  Lists  in  the  law  relating  to  this  matter?     We  answer,  None.     It  is  only 
proposed  to  make  all  concerned  aware  of  the  difference  resulting  froni  the  two  methods,  and 
leave  the  parties  interested  to  govern  their  transactions  accordingly      If  I  mistake  not 
the  law  allows  the  debtor,  when  paying  money  to  a  person  to  whom  he  is  indebted  on  two 
accounts,  to  appropriate  the  payment  to  the  discharge  of  whichsoever  account  he  plea^es- 
the  one  ;hich  is  the  most  burthensome  to  him,  the  one  which  bears  mterest-provided  he 
makes  his  election  at  the  time  of  payment.     If  he  does  not  do  so  the  creditor  can  make  h  s 
election,  and  will,  of  course,  apply  the  payment  to  discharge  the  interest  first  and  tbe  surplus 
to  paying  the  principal.     If  neither  party  makes  an  election  I  believe  the  law  will  do  it  for 
them,  and  will  apply  the  payments  to  discharge  that  debt  which  bears  hardest  upon  the  debtor. 
It  will  be  see^  that  the  debtor  on  the  above  mortage  made  eight  payments  upon  it  m  one 
year,  and  the  creditor,  availing  himself  of  the  Legal  Rule  at  the  time  of  settlement  com- 
pounded  the  interest  Against  him  eight  times  in  that  year.     Nothing  but  ignorance  of  the 

202 


1st  payment 

,  May 

2d 

II 

June 

3d 

II 

Jan. 

4th 

II 

June 

5th 

II 

Jan. 

6th 

II 

May 

7th 

II 

June 

8th 

II 

July 

9th 

II 

Aug. 

10th 

II 

Sep. 

11th 

II 

Nov. 

12th 

II 

Dec. 

13th 

II 

Feb. 

14th 

II 

Sept. 

15th 

II 

Oct. 

16th 

II 

July 

17th 

II 

Oct. 

18th 

II 

Mar. 

19th 

II 

Alar. 

20th 

II 

May 

21st 

II 

July 

22d 

II 

Sep. 

23d 

II 

Apr. 

24th 

II 

Mar. 

25th 

II 

Sep. 

86. 

.       50. 

104. 

.       28. 

50. 

6. 

5. 

.      20. 

20. 

.      15. 

10. 

.       10. 

19. 

.       80.50 

25. 

.      50. 

25. 

40. 

20. 

.      35. 

43.50 

.      58. 

48. 

9. 

ON  COMMEECIAL  CALCULATIONS.— PAET  IIL 

consequences  would  permit  any  debtor  to  make  payments  in  such  a  manner.     What  I  have 
now  stated  will,  it  is  to  be  hoped,  make  the  matter  fully  understood. 

ADJUSTMENT  OF  INTEREST,  GAIN,  LOSS,  &c. 


For  Rule  see  page  180. 

Example  1.  Kay^s  paid  up  capital  for  12  months  is 

He  drew  out  for  6  months  . 
Long's  paid  up  capital  for  one  year  was 
He  drew  out  for  5  months  . 


8600. 
S800. 


$12000. 
$14000 


^    Required  the  Journal  entry  for  adjusting  the  interest  between  the  partners  without  pass- 
ing it  into  the  interest  account. 


$59. 


Answer.  Kay  Dr 

To  Long ^59. 

Ex.  2.  C.  paid  in  $8000  for  1  year  and  drew  out  $400  for  9  months. 

D.  paid  in  $16000  for  1  year  and  drew  out  8800  for  3  mos.  and  $400  for  8  mos. 

E.  paid  in  $14000  for  1  year  and  drew  out  $11000  for  4  months. 

F.  paid  in  $11000  for  1  year  and  drew  out  nothing. 
Required  the  Journal  entry  for  adjusting  the  interest  between  the  parties. 

Ans.  Sundries,  Dr.  to  D $263.50 

C .  $206.50 

E •         .         .         .  48.50 

^ 8.50 

The  same  rule  will  adjust  lost  time  between  mechanics  who  are  in  partnership. 

Ex.  3.  Three  mechanics,  X.,  Y.,  &  Z,  equal  partners  in  their  business,  with  the  under- 
standing that  each  is  to  be  charged  with  $1.50  per  day  for  all  lost  time.  At  the  time  of 
settlement  it  was  found  that  X.  had  lost  24  days,  Y.  6  days,  and  Z.  32  days.  Required 
the  Journal  entry  for  adjusting  the  matter  between  them. 

Ans.  Sundries  To  Y §22. 

-^*          •        •        •        •                .        .        .     $  5. 
Z 17. 

Ex.4.  N.is  |,0.§,P.|,and  Q.  f, proprietors  in  the  business.  N.lost  24.0.  48, and  P. 6 
days.  Q.  lost  no  time.  Each  was  chargeable  with  $1.50  per  day  for  lost  time.  Required 
the  Journal  entry  for  adjusting  the  matter. 

Ans.  0.  To  Sundries $42.75 

N $7.87 


II 


P. 


5.63 


''   Q-       .  29.25 

Ex.  5.  R.,  S.,  T.,  &  U.  dissolved  partnership,  and  divided  all  their  effects,  when  it  was  found 
that  the  following  balances  were  due  to  each,  viz. : 

n.        .        .        ,        $760.                            T.        .        .        .        $582. 
^*^ 470.  U 680. 

The  books  were  kept  by  single  entry.    The  partners  are  equal  in  gain  or  loss.    Required 
the  Journal  entry  that  will  be  made  when  the  sums  are  paid  and  received  for  final  settlement. 

Ans.  Sundries  To  Sundries       .         .     $194. 

^ $137. 

U 57. 

ToS §153. 

''  T 41 

Ex.  6.  v.,  W.,&X.  dissolved  partnership, and  after  dividing  all  their  effects  there  was  a 
balance  due  V.  of  $940 ;  due  W.  $90.    X.  was  indebted  $140.    The  firm  owes  a  note  of  8268. 

203 


DUFF'S  BOOK-KEEPING. 

The  partners  are  equal  in  gain  or  loss.     Required  the  sums  to  be  paid  and  received  among 
the  partners,  which  will  leave  them  all  to  share  equally  in  the  loss,  and  take  up  their  note. 
^  Ans.  Y.  receives  $554.        W.  pays  $296.         X.  pays  $526. 


Journal  entry  when  the  money  is  paid  and  received : 

Sundries  To  Sundries,  $822. 
Bills  Payable,  for  note  taken  up 
V.  for  amount  paid  him 


$268. 
554. 


To  W.,  for  amount  refunded 


// 


X. 


// 


// 


$296. 
526. 


Ex.  7.  G-.  is  I,  H.  is  i,  I.  J,  and  J.  i,  partners  in  business.  After  dissolution  and  divi- 
sion of  all  their  effects,  their  accounts  stood  as  follows : — Balance  due  Gr.  is  $28,  H.  $84,  I. 
is  indebted  to  the  firm  $44,  and  J.'s  account  is  balanced.  Required  the  Journal  entry  that 
will  be  made  in  the  books  of  the  firm,  when  the  amounts  are  paid  and  received,  for  the  final 
settlement  between  the  partners. 


Ans.  Sundries  To  Sundries,  $78. 

VT.  .... 

H.      .... 
To  I.  .         .         . 

II  J. 


$2.50 
75.50 


$61. 
17. 


Ex.  8.  K.,  L.,  M.,and  N.  partners  in  business,  kept  their  books  by  single  entry,  and  after 
dissolution  and  division  of  all  their  effects,  they  find  their  accounts  standing  as  follows  upon 
their  books,  viz. :— There  is  a  balance  due  K.  of  $280;  due  L.  $840 ;  M.  is  indebted  to  the 
firm  $440  ;  N.'s  account  stands  balanced.  K.'s  original  capital  was  $3400;  L.'s,  $1200; 
M.'s  $2220 ;  and  N.'s,  82180.  The  profit  or  loss  was  to  be  divided  in  proportion  to  the  original 
paid' up  capital.  Required  the  Journal  entry  that  will  be  made  in  the  books  of  the  firm,  when 
the  amounts  are  paid  and  received,  to  effect  the  final  settlement  between  the  partners. 


Ans.  Sundries  To  Sundries,  $772.44 
K.  for  amt.  received 
L.         "  "  •         • 

To  M.  for  amt.  paid  in   . 
//  N.         //  If 


$23.11 
749.33 


$607.73 
164.71 


Ex.  9.  C.  Rush,  R.  Lyell,  and  F.  Fish,  partners  in  business,  kept  their  books  for  several 
years  by  single  entry.  They  finally  closed  them,  made  a  dividend  of  the  profits,  and  re- 
opened them  by  double  entry,  which  necessarily  exhibited  each  partner's  net  capital  at  this 
date.  Some  time  afterwards.  Rush  furnished  their  book-keeper  with  an  account  of  $840, 
which  he  had  withdrawn  for  his  own  use  from  the  firm,  previous  to  the  closing  of  the  old 
books  and  which  he  had  kept  a  private  account  of  without  entering  it  to  his  account  in  the 
books' of  the  firm.  Rush  and  Lyell  were  each  i  and  Fish  ^  gain  or  loss  in  the  business. 
Required  the  Journal  entry  to  settle  the  above  $840  between  them  on  their  new  books. 

Ans.  Rush  To  Sundries,  $630. 

To  Fish $420. 

//   Lyell       ....  210. 

Ex.  10.  On  July  1,  1853,  W.  Wood  retires  from  the  firm  of  Hay  &  Wood.  Their  Bal- 
ance Sheet  is  made  out  for  settlement.  We  find  their  Profit  &  Loss  Account  Dr.  $1280,  Cr. 
^2450,  and  their  Commission  Account  is  credited  $3400,  in  addition  to  which  it  is  entitled 
to  5  per  cent,  commission  on  sales  effected  on  the  following  consignments,  which  are  only 
partly  sold,  viz.:— On  R.  Cargo's  sales,  which  is  Dr.  for  charges  posted,  $400,  and  Cr.  for 
gales  effected,  $7800;  due  by  average  May  1,  1853.  M.  Loder's  sales  is  Dr.  for  charges 
posted.  $300;  Cr.  for  sales  effected,  $9400 ;  due  by  average  September  1,  1853.  ^ 

Required  the  Ledger  specification  exhibiting  the  disposition  of  the  above  consignments, 
with  the  commission'^and  interest  on  the  same  in  the  partners'  Balance  sheet.     (See  Direc 
tions,  page  177.) 

204 


ON  COMMERCIAL  CALCULATIONS.— PART  III. 

Then  suppose  Hay  continues  the  business  in  his  own  name  and  completes  the  sales  of 
Cargo's  goods — total  sales,  $9800.  He  also  completes  Loder's  sales — $10,400.  The  charges 
posted  are,  in  both  cases,  as  above  stated.  Under  the  Ledger  specification  already  made, 
exhibit  Hay's  Commission  Account,  re-opened  and  credited  for  the  commission  on  the  final 
settlement  of  the  consignments. 

Ans.  The  firm  will  owe  Hay  $70.10  int. 

The  student  will  write  out  the  Ledger  specification. 


BUYING  AND  SELLING  STOCKS,  &c. 

Ex.  1.  Required  the  value  of  Hudson  River  Railroad  Stock,  which  makes  a  dividend 
of  8%  per  annum,  payable  semi-annually,  money  being  worth  6  per  cent,  per  annum,  pay- 
able semi-annually. 

Solution.— 6  :  100  :  8  : :  $133i.  Ans.  That  is,  $100  of  stock  is  worth  $133 J,  or  33i 
per  cent,  advance. 

Ex.  2.  What  is  the  value  of  the  Citizens'  Bank  Stock,  which  has  made  a  dividend  of  5 
per  cent,  per  annum?     Money  worth  6  per  cent.  Ans.  16§  per  cent,  discount. 

Ex.  3.  Bought  $500  in  Exchange  Bank  Stock,  which  divides  9  per  cent,  dividend  per 
annum.  Money  being  worth  6  per  cent,  interest.  I  am  to  pay  the  amount  in  Tennessee 
money  which  is  at  3  per  cent,  discount.  Required  the  amount  of  Tennessee  money  it  will 
take  to  pay  for  the  stock.  ^  Ans.  $773.20,  nearly. 

Ex.  4.  Sold  $2000  of  City  Bank  Stock,  which  divides  7  J  per  cent,  per  annum.  Received 
in  part  payment  $1000  of  Winchester  Railroad  Stock,  which  divides  4J  per  cent,  per 
annum.  Money  worth  6  per  cent,  interest.  Required  the  balance  I  am  to  receive  in 
inoney.  Ans.  $1750. 

Ex.  5.  London  Bridge  Stock  is  said  to  divide  2  per  cent,  per  annum.  Money  in  England 
being  worth  5%  interest.     Required  the  value  of  this  stock.  Ans.  60%  discount. 


DOMESTIC  AND  FOREIGN  EXCHANGES. 

Ex.  1.  Bought  a  bill  on  Boston,  for  $780,  at  1  %  premium.     What  must  I  pay  for  it? 

TP      o    T^      1  -^^s.  $787.80. 

JliX.  2.  Bought  a  bill  on  New  Orleans,  for  $1680,  at  f  per  cent,  discount.  What  must  I 
pay  for  It?  ^j^g.  $1667.40. 

Ex.  S.  Sold  my  bill  on  St.  Louis,  for  $1840,  for  1  J%  discount.  Required  the  amount 
I  shall  receive.  ans.  $1812.40. 

Ex.  4.  Sold  my  bill  on  London,  for  £450  sterling,  for  8  per  cent,  premium.  Required 
the  amount.*  ^^^g    ^9160. 

Ex.  5.  Bought  a  bill  on  London,  for  £1266  15s.t  at  9i%  premium.  What  shall  I  have 
to  pay  for  It?  Ans.  $6164.85.   . 

JliX.  b.  1  owe  Holderness  &  Chilton,  of  Liverpool,  $7218,  net  proceeds  of  sales  of  mer- 
chandise efi"ected  for  them,  which  I  am  to  remit  them  in  a  Bill  of  Exchange  on  London  for 
such  amount  as  will  close  the  transaction,  less  i  per  cent,  on  the  face  of  the  bill,  for  my 


di^d^^^'T^''  *'^*°^*'  ^^^"^""^  '"''"''^  '°*°  ^^'^^''*^  currency,  multiply  by  4f    To  change  Federal  currency  into  sterUng. 
t  If  there  be  shillings  and  pence,  change  them  into  the  decimal  of  a  pound,  and  multiply  as  before 

205 


DUFF'S  BOOK-KEEPING. 

commission  for  investing.   Bills  on  London  are  8  per  cent,  premium.   Required  the  amount 
of  the  bill,  in  sterling,  to  be  remitted.  Ans.  £1500  5s.  Q-fd. 

Ex.  7.  A.,  of  Pittsburgh,  sent  articles  to  the  World's  Fair,  in  London,  which  were  after- 
wards sold  by  B.,  of  London,  on  A.'s  account— net  proceeds,  £1266  15s.  sterling.  B.  was 
instructed  to  invest  this  amount  in  Bills  on  New  York,  and  remit  to  A.,  which  was  accord- 
ingly done.  B.  charged  i  per  cent,  brokerage,  on  the  face  of  the  bills,  for  investing,  and 
purchased  the  bills  at  7  per  cent,  discount.  Required  the  amount  of  the  bill  A.  must  re- 
ceive in  Federal  currency  to  close  the  transaction.  Ans.  S6037.53,  nearly. 

We  confine  our  illustrations  of  Foreign  Exchange  to  Great  Britain,  because  a  knowledge 
of  it  is  necessary  to  understanding  the  accounts  in  this  system  of  Book-keeping.  But  to 
treat  of  Exchange  upon  all  foreign  countries  would  require  space  which  we  can  appropriate 
to  matters  of  greater  interest  to  the  majority  of  our  patrons. 


ON  COMMEKCIAL  CALCULATIONS.— PAET  IIL 


Ex.  2.     Insured  my  ship,  the  Chieftain,  for  $65000,  to  Canton  and  back,  for  4}  per  c 

dll  it  amount  to  ?  Ans.     §2762.5i 


premium.     What  will  it  amount  to  ?  Ans.     §2762.50. 

Ex.  3.  Insured  the  ship  Ironwood,  for  $48000,  at  2*  %,  and  gave  my  note  for  the  pre- 
mium. Before  the  note  was  paid  the  ship  was  lost,  and  the  insurers  paid  the  loss.  Required 
the  amount  I  received,  taking  up  my  note  as  part  payment.  Ans.     846800. 

Ex.  4.  Insured  the  ship  Roscoe,  (which  was  worth  $47500,)  for  $45000  at  2  per  cent, 
policy,  $1,  to  Liverpool  and  back  to  New  York.  Freight  out  was  $12500.  Expenses  at 
Liverpool,  $4500.  The  ship  was  lost  on  her  return.  The  insurance  company  has  paid  the 
insurance.  Required  each  owner's  share  of  the  net  proceeds  of  the  vessel.  W.  Hay  is  i, 
myself  i,  and  C.  Hartwell  h. 

Ans.     My  share,  $13024.75.     Hay's,  $13024.75.     Hartwell's,  $26049.50. 

Ex.  5.  I  wish  to  insure  merchandise  on  board  the  ship  Chieftain,  for  San  Francisco. 
Amount  of  invoice,  $12447 ;  cost  of  policy,  $1 ;  premium  is  2  per  cent.  Required  the  pre- 
mium, and  the  sum  upon  which  we  insure  to  cover  the  premium  and  policy.  (See  Note  3, 
page  84.)  Ans.    Amount  to  cover,  $12702.04.     Premium.  $254.04. 


INDIEEOT   EXCHANGE 

Effects  a  remittance  through  one  distant  place  to  another.     It  is  sometimes  termed  the 

Arbitration  op  Exchange. 

Ex.  1.  I  wish  to  remit  George  Wildes  &  Co.,  of  London,  £3600  sterling.  Exchange  on 
London  in  New  York,  is  10  per  cent,  premium.  Exchange  on  London  can  be  obtained  at 
TT_i:i?__'  XT »  c! *;„  -p^-  Q  ^««  ««T>+  vM.ATn^iTn      Naw  VnrV  T?il1s  nn  Halifax  are  i  ner  cent. 


Halifax,  Nova  Scotia,  for  9  per  cent,  premium.  New  York  Bills  on  Halifax  are  \  per  ce 
discount.  If  I  remit  a  draft  to  Halifax,  and  pay  my  agent  ^  per  cent,  for  investing  it 
Bills  on  London,  what  will  I  gain  over  the  direct  Exchange  ? 

SOLUTION. 

£3600  sterling  =  $16000  @  10%  prem.  =  cost  of  the  direct  Exchange    .         .  $17,600.00 
Halifax  Bill  on  London,  @  9  %  +  ^%  for  investing      .         .  $17,520.00 
i%  discount  for  New  York  on  Halifax ^^-^^ 

Cost  of  the  indirect  Exchange 17.476.20 

Gain «123.80 

Ex.  2.  I  have  to  remit  £6300  to  London.  New  York  Bills  on  London  are  10  J  per  cent, 
premium.  New  York  on  St.  John,  New  Brunswick,  f  per  cent,  discount.  St.  John  on 
London  is  9J  per  cent,  premium.  If  I  pay  my  agent  in  St.  John  I  per  cent,  for  investing, 
what  will  I  gain  by  the  indirect  Exchange  ?  Ans.  $370.48. 


INSUEANOE. 


Insurance  is  a  security  given  by  underwriters  or  insurance  companies  to  the  owners  of 
ships,  houses,  or  other  property,  to  indemnify  them  in  case  of  loss  by  fire  or  shipwreck. 

The  premium  is  always  a  percentage  on  the  value  insured.  The  written  and  printed 
document  held  by  the  party  insured  as  evidence  of  the  contract  of  indemnity  is  called  the 
Policy. 

Ex  1  If  I  get  my  house  insured  for  $4500,  at  1 J  per  cent,  premium,  what  shall  I  pay 
as  premium?  Ans.  $56.25. 

^  206 


SIMPLE  EQUATIONS. 

RULE.— See  page  68. 

Ex.  1.  Received  from  John  Fowler,  for  sale  on  commission,  900  bbls.  flour,  upon  which 
paid  freight  and  charges,  $14.  After  charges,  storage,  6^^  cts.  "^  bbl.  Laborers'  wages,  for 
storing  and  hoisting  out,  $2.50.  Commission  for  selling,  2  J  %.  Sales  effected  as  follows, 
viz. : 

May    1,    40  bbls.  @  $4.50,  for  cash ; 


II  19,  60 
June  2,  150 
ft  2,  50 
//  11, 500 
//     21,   50 


II 
II 
II 
II 
II 


@  4.75,  on  acct.  @  30  days ; 

@  4.80,  on  note,  @  60     // 

@  4.50,  for  cash  j 

@  4.75,  on  note,  @  90  days ; 

@  4.80,      //         @30 

@  4.50,  for  cash. 


// 


//    30,   50 

Required  the  account  sales  showing  the  net  proceeds,  and  when  due. 

Ans.     Net  proceeds,  $4071.     Due,  August  13th. 

Ex.  2.  Received  from  Lyon,  Haven  k  Co.  for  sale  on  consignment,  150  bbls.  mackerel 
and  40  bbls.  salmon,  upon  which  paid  freight  and  cartage,  $190.  Labor  in  storing.  $1.70. 
Commission  on  the  sales,  5  per  cent.     Sales  effected  as  follows,  viz : 

June    7,    40  bbls.  mackerel,  @  $12.50,  on  acct.  @  3  mos. 

//     19,    10     //      salmon,     @    18.75,  on  note,  @  30  days ; 
July    1,      ^     II         II  @    18.00,  for  cash; 

//     17,  100     //     mackerel,  @    12.75,  on  note,  @  60  days ; 

II    29,    16    II      salmon,     @    18.75,  on  acct.  @  30  days. 

State  the  account  sales,  showing  the  net  proceeds,  when  due  by  equation,  and  the  balance 
of  goods  on  hand. 

Ans.     Net  proceeds,  $2043.175.     Due,  September  5. 

Ex.  3.  Received  from  George  Carver,  for  sale  on  his  account,  80  tons  Iron.  Freiirht 
and  charges  paid,  $74.     Commission  for  selling,  5  per  cent,  which  was  sold  as  follows  :* 


*  The  sales  being  all  at  6  months,  we  may  equate  between  the  days  of  sale. 

207 


DUFF'S  BOOK-KEEPING. 

May  20,  Sold  at  6  months,  on  acct.  12  tons,  @  S65 


u  31, 
June  20, 

n  30, 

July  11,^ 

;/  11, 

//  11, 

H  19, 


u 


n 

H 

u 
II 
II 
II 
II 


II 
II 
II 
II 
II 
II 
It 


8 
15 
18 
6 
4 
8 
4 


@ 

@ 


@ 
@ 


66. 
65. 
64. 
66. 
65. 
65. 
66. 


We  are  to  pay  Carver  the  net  proceeds  in  a  note  payable  6  months  after  date      Required 
the  amount  of  it,  and  the  day  on  which  it  must  be  dated.     Also,  the  account  sales,  showing 

the  amount  on  hand.  .  _-    -^        ««      /-v    i       i    r>  . 

Ans.     Date  of  note,  for  84494.55,  June  22.     On  hand,  6  tons. 

Ex.  4.     Sold  John  Taylor  &  Co. : 

April  30,  Invoice  of  Merchandise,  @    4  months,  $620.49 
Tt/r^         n'  ..  ..  ^^     ft        n  7.^0.50 


May 

n 
July 


1, 

30, 

1, 
11, 
11, 


u 

» 

9 
W 


@    6      //  730.50 

@  30  days  480.80 

(a)  60     ff  560.95 

@  60     //  330.40 

@    4  months,  500.00 


Required  the  day  upon  which  the  above  account  will  fall  due,  by  average. 

^  "^  Ans.     September  16. 

Ex  5  Received  of  Charles  Page,  for  sale  on  his  account,  30  hhds.  N.  0.  sugar,  upon 
which  paid  freight,  860;  cartage,  87.50;  storage  89.  Commission  and  guarantee,  5  per 
cent.     Sales  effected  as  follows : 

Au<-.    1,  Sold,  on  note  @  60  days,  4  hhds.  4660  lbs.  less  10  per  cent,  tare,  5|  cts. 


30, 
30, 
30, 
Sep.  16, 
u      30, 


II 


11        @    3  mos.   6 
for  cash,  3 

on  acct.  @  60  days,  7 
for  cash,  4 

on  note,  @    3  mos.  6 


// 

5880    / 

r             // 

It         1 

r       bi     ti 

// 

3390    / 

1           n 

If         1 

1     5i    // 

II 

6990    / 

1            u 

H            1 

/     5f    // 

II 

4830    / 

1          n 

H            1 

/     5i    // 

II 

5960    / 

1          tt 

If            1 

/     51    // 

Required  the  account  sales,  exhibiting  the  net  proceeds  and  the  day  when  the  same  is 
due,  by  average.  Ans.     Net  proceeds,  81424.78.     Due,  November  1. 


STOEAGE  EQUATIONS. 

Equation  is  applied  to  the  storage  of  property  by  the  following 

Rule  —Multiply  the  number  of  packages  by  the  number  of  days  that  they  have  been  in 
store.  Divide  the  product  by  30;  the  quotient  is  the  number  of  packages  subject  to  one 
month's  storage.^ 

Ex.  1.     I  have  stored  1500  bbls.  flour  for  4  days.     Required  the  number  of  bbls.  subject 

to  one  month's  storage.  ^       ^^        «^^  1 1 1        * 

^         Solution.— 1500  X  4  days  =  6000  h-  30  =  200  bbls.     Ans. 

bbls.  bbls.  days.    days. 

Proof— 1500  :  200  :  :  30  :  4. 


TK.-a  nnA  thfi  fwo  followin"  Bales  may  be  added  together  and  make  bnt  one  product.  ,       .    „  j  tj  n       v 

5^E  -^VherelnumS  of  pacLSef  are  received^and  delivered  at  different  dates,  proceed  as  in  Compound  Fellowship. 

208 


ON  COMMERCIAL  CALCULATIONS.—PART  III. 


Ex.  2.     May    1,  Received  200  bbls.  flour. 

"     16,         II         300     II         n 

June  1,         //        400     u        u 

July  13,         //         500     //        // 

20,         //         700     //        // 


Aug 


May  10,  Sold  150  bbls. 

II  18,  II  30  // 
June  10,  M  550  // 
July  30,  //  660  // 
Aug.  30,     //     700     II 


Required  the  number  of  bbls.  subject  to  one  month's  storage  on  August  31. 

Ans.     1269  bbls. 
Ex.  3.     Received  the  following  consignments  from  J.  L.  Starr  &  Co.,  viz. 


Sept 

II 

II 
Oct. 

II 
Nov 


1,  Received  15  hhds.  sugar. 
12,         1/        80  bbls.   molasses. 
30,         II        30  hhds.  tobacco. 
^  6,         //         40     H      sugar. 
20,         II         50  bbls.   molasses. 
30,         11        40  hhds.  tobacco. 


Sept.  20,  Sold  12  hhds.  sugar. 
Oct.      1,     //     40  bbls.   molasses. 
Nov.     1,     //     43  hhds.  sugar. 

»      10,     //     60  bbls.    molasses. 
Dec.     1,     //     65  hhds.  tobacco. 


Required  the  number  of  hhds.  and  bbls.  subject,  each,  to  one  month's  storage,  Dec   1 

Ans.     48  hhds.  sugar.     160  bbls.  molasses.     63  hhdl  tobacco! 


COMPOUND    EQUATIONS. 

For  Rule,  see  note  on  page  116. 

Ex.  1.     May  1,  1866  received  of  R.  Morris,  London,  40  bales  carpet.    Paid  frei-ht  and 
other  charges  in  cash,  $1600      Sold  the  carpets  the  same  day,  on  note  at  6  mos.  f^  §60(2) 
du^k  casT  ''''     ^"^'^°*'^'  ^%-     I^equired  the  day  on  which  R.  Morris'  net  proceeds  are 

fr^t  "/r"'''  "^^  ^L''  ^-  ^^^*"^"'  ''  ^-*-'  ^^  --  U^^ints'^'paid 

S  '  O  tl?'^''  'T^'  f??-  i"^^  ^^  ""'"'^''^  ^''  ^'^^  ««  ^«  ^t  30  days'  sight  tbr 
^2000.  On  the  same  day  sold  the  50  cases  prints,  on  note  at  4  mos.  for  S5400.  Commis- 
sion and  guarantee,  5%.  Storage,  $10.  Required  the  day  on  which  the  balance  of  thTn^ 
proceeds  will  be  due  .n  cash  Ans.     Balanc'e,  $3000.     Due,  Dec.  5   1866 

.     .  A    ^    '  1866,  sold  R.  Manly  an  invoice  of  dry  goods,  amounting  to  82800  on 
account,  at  4  mos^    On  the  same  day  I  bought  of  him  an  fnvoice  of  flour^at  30  day^br 

f  l^'^A.  r^  \''  "^^^  f  ^  ^  ^^'-  ^^"  *^^  ^^^^°^^-     I^equired  the  day  on  which  thia 

note  must  be  dated  so  that  neither  party  will  lose  interest. 

Ans.     Note  for  $1000.     Balance  will  bear  date  December  15,  1866. 

Our  account  with  Robert  Carver  is  as  follows : 

Jan.     1.     Sold  him  goods  on  account,  at  3  months     . 


Ex.4. 

1867. 


//  27. 
Feb.  20. 
Mar.  12. 
Apr.    1. 


// 


ff 


// 
// 


1867. 


Jan.  16. 
Feb.  10. 
Mar. 
Apr. 


Crs. 
Received  cash  on  account 


$600.00 
550.50 
449.80 
500.49 
400.21 


4. 
1. 


II 
II 


II 


II 


$250.00 
300.00 
350.00 
200.00 


J  Note 


his  order  on  John  Doe,  at  10  days 

cash  on  account     ....    ^^ 

Required  the  day  on  which  the  balance  of  the  account  will  fall  due"  by  "average. 
I?      c      TI-    1    1      1  ^NS.     July  14. 

falU  *  ^^  ''''  ""^'"^  *^'  ^''^''''^  ^^  ^^"^^"^  ^^y''  ^^^^^"^  (P^S«  116)  wiU 

T  209  ^''''     ^^'^^^- 


DUFF'S  BOOK-KEEPING. 

Ex.  6.     Our  account  with  George  Draper  stands  as  follows,  viz. : 
July     1.     Sold  him  merchandise,  at  4  mos. 
w      10.     Paid  his  order  in  cash     . 
n      30.     Merchandise  at  60  days 
Aug.    2.  '/  "     3  mos. 

r;      19.     Paid  his  order  in  cash 
Sept.  30-     Merchandise  at  30  days 
Oct.      1.  I*  //  60     // 

July  30.     Credit  for  his  note  at    4  mos. 
Aug.  31.  '/  "  90  days 

Oct.      1.  "  "  30     »    . 

II     30.  '/  cash  in  full 

Required  the  interest  due  to  us  or  by  us  on  the  above  account  by  equation. 

Ans.    Dr.  equation,  Oct.  26.     Cr.  Nov.  29.     Interest  due  us,  Oct.  30,  U^.oi. 


.  $1600 

80 

.      600 

850 
.      100 

300 
.      450 


$1680 

1450 

400 

450 


COMPUTING   FEEIGHT. 

Marine  freights  are  computed  by  the  ton  of  2240  lbs  for  all  articles  occupying  less  than 
forty  cubic  feet  to  the  ton. 

Rule.— Multiply  the  given  number  of  tons  by  the  rate ;  the  product  is  the  freight 

Ex.  1.     Required  the  freight  of  131  tons  15  cwt.  of  Iron,  at  $2.50  pej- ton.  ^^^^  ^^ 

Ex.  2.     Required  the  freight  of  71  tons  5  cwt.  of  Copper,  at  $2.40  per  ton. 

Ans.     ci7l. 

In  the  Western  River  Navigation  freight  is  computed  by  the  net  100  lbs. 

Rule.— Multiply  the  given  number  of  pounds  by  the  rate,  and  divide  the  product  by 
100  ;  the  quotient  is  the  freight. 

Ex.  3.     Required  the  freight  of  47491  lbs,  at  15  cents  per  100  lbs. 

^  Ans.     $71.24,  nearly. 

Ex.  4.     Required  the  freight  of  61221  lbs,  at  37*  cents  per  100  lbs. 

^  Ans.     $229.58,  nearly. 

Ex.  5.     Required  the  freight  of  31121  lbs,  at  ISf  cents  per  100  lbs 

Ans.    cOO'"""!"- 

Ex.  6.     Required  the  freight  of  40411  lbs,  at  12i  cents  per  100  lbs. 

Ans.    ^ou.oi— j— • 

The  same  Rule  applies  in  computing  the  price  of  Scantling,  Boards,  &c. 

Ex.  7.     Required  the  amount  of  1721  feet  of  Scantling,  at  $1.37^  p^r^lOO  ^^^^ 

Ex.  8.     Required  the  amount  of  118372  feet  of  Boards,  at  $11.25  per  M. 

^  Ans.     $loi51.by. 

Ex.  9.     Required  the  amount  of  70112  feet  of  Flooring,  at  $21  per^M.      ^^^^ 

Ex.  10.     Required  the  amount  of  1129  feet  of  Oak  Scantling,  at  $3.12*  per  C. 

Ans.     ^oi).-dO-j- 

210 


ON  COMMERCIAL  CALCULATIONS.— PART  III. 


GENEEAL  AVEKAGE. 


When  damage  or  loss  is  incurred  by  any  part  of  the  vessel  or  cargo,  for  the  benefit  of  all 
concerned,  all  who  profited  by  the  safety  of  the  vessel  or  cargo  must  contribute  to  the  relief 
of  those  whose  property  was  thus  sacrificed.     This  contribution  is  called  General  Average. 

Such  sacrifices  cannot  be  made  without  consultation  of  the  officers  and  crew,  and  mustl)e 
absolutely  necessary  for  the  safety  of  the  vessel,  otherwise  Greneral  Average  will  not  take 
place. 

Particular  Average  means  a  partial  loss  of  the  ship  or  cargo,  by  the  dangers  of  the  sea, 
fire,  or  other  unavoidable  accident.    This  loss  must  be  borne  by  the  owners  of  the  property 
or  their  insurers.  ' 

The  vessel  and  goods  injured,  saved  or  lost,  are  valued  at  what  they  would  have  brought 
in  cash  at  the  port  of  destination. 

It  is  customary,  in  calculations  of  General  Average,  to  allow  only  two-thirds  of  the  cost  of 
replacing  vessels' masts  or  furniture,  the  new  articles  being  worth  one-third  more  than  the  old. 

The  rule  for  finding  the  General  Average  is  similar  to  that  of  Fellowship. 

Rule. — As  the  sum  of  the  values  of  the  contributory  articles  is  to  the  total  loss,  so  is  100 
to  the  per  centage  loss. 

Ex.  1.  Suppose  the  Ship  Hudson,  on  her  passage  from  Liverpool  to  New  York,  to  have 
sustained  the  following  damages,  viz. : 


Cost  of  replacing  masts,  rigging,  and  cables,  cut  away 

Less  i,  extra  value  for  being  new 
Cost  of  one  anchor,  which  was  lost     .         .         .         . 
15  pipes  of  wine,  thrown  overboard 
Towing  into  harbor 


$3000 
1000  $2000 

800 

3000 
200 


General  average  loss 


$6000 


Contributory  interests,  viz. : 
Ship  Hudson,  valued  at 
Cargo 
Freight    . 

Less  portage  bill 


$4000 
2000 


As  60000  : :  6000  :  100  : :  10  per  cent. 

So  that  the  ship's  owners  must  contribute 
Owners  or  insurers  of  the  cargo 
Owners  or  insurers  of  the  freight 


$16000 
42000 

2000 
$60000 


$1600 

4200 

200 

$6000 


Ex.  2.  The  ship  Roscoe,  on  her  voyage  from  New  Orleans  to  New  York,  was  thrown  upon 
her  beam  ends  and  obliged  to  cut  away  her  masts,  when  she  righted,  but  sprung  a  leak,  in 
consequence  of  which  the  following  property  was  thrown  overboard  to  lighten  the  vessel, 
which  was  ultimately  towed  into  New  York  : 


20  hhds.  Sugar,  belonging  to  R.  Dyer  . 
30    w  II  I,  W.  Kane      . 

Damage  done  to  G.  Halis'  goods 
Freight  of  goods  thrown  overboard   . 
Cost  of  new  cables,  masts,  sails,  and  rigging 

Less  ^,  for  newness   . 
Towing  the  ship  into  port 

211 


.     $1600 

1800 

.       1600 

120 

$3600 

1200     2400 

80 


$7600 


DUFF'S  BOOK-KEEPING. 


ON  COMMEKCIAL  CALCULATIONS.— PART  IIL 


111 


*ni 


n 


Contributory  interests,  viz. : 

R.  Dyer's  goods,  thrown  overboard 
W.  Kane's  //  w  ... 

Value  of  W.  Hay's  goods,  less  freight  and  charges 
a        G-.  Page's       "  "  "  " 

w        R.  Manly 's     "  n  n  n 

0        G.  Halis'        n  n  If  If 

If       the  ship 


Deduct  for  damages 


Value  of  the  freight 


Less  seamen's  wages 


$20000 
3600 

86800 
3400 


$1600 

1800 

4200 

5950 

12650 

14800 


16400 


3400 
$60800 


Required  the  per  centage  that  each  party  must  lose  of  his  interest  in  the  ship,  cargo,  and 

^^®^^^^-  Ans.     12^  per  cent. 

We  have  above  given  the  rule  for  General  Average,  with  illustrations  to  explain  its  applica- 
tion which  any  good  arithmetician  will  readily  understand.  But  it  is  to  be  observed,  that 
to  understand  in  all  cases  what  will  constitute  a  General  Average  loss,  and  what  interests 
are  to  contribute  to  it,  requires  an  intimate  knowledge  of  the  Law  of  Insurance.  J^or 
instance,  it  has  been  decided  that  the  damage  sustained  by  a  merchant  vessel  and  cargo,  in 
fiahtin-  and  beating  off  a  privateer,  is  not  a  subject  for  General  Average.  Also,  the  removd 
of  a  quantity  of  perishable  fruit  while  the  vessel  was  in  a  port  of  refuge  for  the  purpose  of 
repairs  which  removal  increased  an  incipient  decay,  and  caused  an  entire  loss  ot  the  truit ; 
this  was  also  decided  to  be  no  matter  for  General  Average.  In  fact  it  is  said  by  an  eminent 
writer  upon  law  to  be  "the  most  intricate  and  perplexing  in  the  whole  Law  of  Insurance. 
The  subject  will  be  found  judiciously  treated  in  the  American  editions  of  *'  Smith  s  Mercan- 
tile Law,"  and  "  Abbott  upon  Shipping." 


ON  OPENING  BOOKS  BY  DOUBLE  ENTEY. 

Ex  1  I  open  my  books  with  cash  in  hand,  $100.  Deposit  in  the  City  Bank,  $4900.  R. 
Gain's  note  for  $4000 ;  interest  due  on  the  same,  $200.  I  own  house  and  lot  on  Water  Street, 
worth  $30000  upon  which  I  owe  $10000  on  bond,  with  $500  interest  due  on  the  same.  H. 
Stubbs  owes  me  on  account,  $700.  I  owe  R.  Ryan  on  account,  $1500.  Required  the  Journal 
entry  for  opening  my  books. 

Ex  2  Commenced  business  with  cash  in  hand,  $250.  Deposit  in  Exchange  Bank, 
$7000  Eiohty  shares  Hudson  River  Rail  Road  Stock,  $100  per  share,  with  25  per  cent, 
paid  upon  it  Forty  shares  City  Bank  Stock,  $50  per  share,  in  full.  One  hundred  shares 
Central  Rail  Road  Stock,  $100  per  share,  with  60  per  cent,  paid  upon  it.  Required  the 
opening  Journal  entry. 

Ex.  3.  Jacob  Ring  pays  in  cash,  $2100.  Aaron  Budd,  $1990.  They  are  to  do  business 
under  the  firm  of  Ring  &  Budd.     Required  the  Journal  entry  for  opening  their  books. 

Ex  4.  J.  Park  and  P.  Buchan,  partners  in  business.  Park  pays  in  cash,  $1000  j  merchan- 
dise, $1100.  Buchan  pays  in  cash,  $1000;  merchandise,  $890;  notes  due  him,  $100. 
Required  the  Journal  entry  for  opening  their  books. 

212 


Ex  6. 


Ex.  5.     Rowen  &  Cox  commence  business  with  the  following  capital,  viz. : 

J.  Rowen  pays  in  cash,  $2000 ;  merchandise,  $500 ;  notes  due  him,  $400.     Wm 
Tell  owes  him,  on  account,  $100.     Rowen  owes  debts  which  the  firm  assumes, 
viz. :  On  his  notes,  $300 ;  to  Wm.  Yates,  on  account,  $400. 
B.  Cox  pays  in  cash,  $1800 ;  merchandise,  $800 ;  notes  due  him,  $600.     J. 
Pond  owes  him,  on  account,  $300.     Cox  owes  debts  which  the  firm  assumes, 
viz. :  On  his  notes,  $700 ;  to  Geo.  Oates,  on  account,  $500. 
Required  the  Journal  entry  for  opening  their  books. 
Dean  &  Brady  commence  business  as  follows : 
R.  Dean  pays  in  cash,  $1400;  notes  due  him,  $1200;  interest  due  on  these 
notes,  $130 ;  merchandise,  $600.     Sands  &  Turner  owe  him,  on  account, 
$200.     The  firm  assumes  the  following  debts  owing  by  Dean,  viz. :  On  his 
notes,  $500 ;  to  Fulton  &  Gowan,  $200. 
D.  Brady  pays  in  cash,  $1200;  notes  due  him,  $1500;  interest  due  on  these 

notes,  $160.  The  firm  assumes  notes  owing  by  Brady,  $980. 
Required  the  Journal  entry  for  opening  their  books. 
D.  Mills  is  the  owner  of  a  Factory,  which,  together  with  other  effects  belonging 
to  his  business,  constitutes  a  net  capital  of  $40000,  which  is  at  the  credit  of  his  Stock  A^ 
count  in  a  regular  set  of  double  entry  books.  Without  closing  his  books  or  exhibiting  any 
inventory  of  his  property,  he  agrees  to  admit  J.  Roy  and  B.  Gates  as  equal  partners,  on'their 
paying  into  the  firm  as  capital  $20000  each,  and  paying  him  a  bonus  of  $10000  each,  also, 
in  cash ;  which  was  to  constitute  all  three  partners  equal  in  property,  and  equal  in  gain  or 
loss.  Required  the  Journal  entry  for  introducing  the  new  partners  and  their  capital  into 
the  old  books. 

Ex.  8.  Suppose  Mills'  capital  to  be  $60000,  at  the  credit  of  his  Stock  Account.  Roy 
and  Gates  agree  to  come  in  as  i  partners  in  the  business  by  paying  in,  as  capital,  $30000 
each,  in  cash,  and  also  to  pay  Mills  a  bonus  of  $5000  each,  in  cash.  Required  the  Journal 
entry  to  introduce  the  new  partners'  names  into  the  books.  Mills  to  be  ^,  and  Roy  and  Gates 
each  i  in  property  and  J  gain  or  loss. 

When  a  firm  establishes  branches  of  its  business  at  distant  points,  these  branches  are 
debited  and  credited  in  all  respects  like  strangers,  and  the  branches  do  the  same  with  each 
other  and  with  the  head  of  the  firm. 


Ex.  7. 


EXEEOISES  IN  CLOSING  THE  LEDGEE. 


Ex.  1. 


tf 


Stock 

Merchandise 
Profit  &  Loss        // 
Bills  Receivable  tf 
Bills  Payable        n 
W.  Horn  // 

D.  Camp 


is  Dr.  $1200 

3470 

850 

2700 

240 

180 

1900 


(f 


Cr.  $2800 

//  2400,  on  hand,  $1250 

»  1650 

If  1800 

If  1200 

#  270 

If  420 


Write  out  a  Ledger  specification  of  the  above,  open  a  Balance  Account,  and  close  the  whole 
of  the  accounts. 


// 


Ex.  2.    Stock 

Merchandise 
Profit  &  Loss 
Bills  Receivable  ff 
Bills  Payable       // 
R.  Irons  a 

John  Doe  n 


is  Dr.  $1800 

"         7500 

2150 

980 

200 

750 

1600 


Cr.  $2200 

//  4600,  on  hand,  $3500 
If  250 
ff  880 
n  6600 
ff  150 
300 


Write  out  the, Ledger  statement,  open  the  Balance  Account,  and  close  the  books. 

213 


f , 


DUFF'S  BOOK-KEEPING. 


Ex.  3.     Stock 

Profit  &  Loss 

Interest 

Expense 

Storage 

Commission 

Balance 


is  Dr. 


H 
If 

n 
It 

If 


$750 
1220 

150 
1410 

750 

9890 


Cr.  $4800 

n  1880 

H  450 

If  110 

If  1250 

n  600 

n  5080 


Write  out  the  Ledger  statement  and  make  the  final  closing  entries. 

Ex.  4.     John  Doe  and  Richard  Roe,  partners  in  business,  are  balancing  their  books, 
which  they  find  standing  at  the  final  closing  as  follows : 

J.  Doe's  account  is  Dr.       $420  Cr.  $3800 

R.  Roe's  //  60  '^      3600 

Profit  &  Loss     "  700  '/      4900 

Balance  //  17320  '/      6200 

The  partners  are  equal  in  gain  or  loss.     Required  the  final  closing  of  the  Ledger. 

Ex  5      S.'Boon  and  R.  Simmons  find  their  books  standing  as  follows : 

S.  Boon's  acct.  is  Dr.  $1230  Cr.  $2700 

R.  Simmons'     n  1050  "      1300 

Profit  &  Loss    '/  6600  "        900 

Balance  ^  9220  '/    13200 

S.  Boon  is  f  and  R.  Simmons  J  gain  or  loss.     Required  the  final  closing  of  the  Ledger. 


PAETNEESHIP  SETTLEMENTS  BY  SINGLE  ENTET: 

In  single  entry  Book-keeping,  where  no  Profit  &  Loss  Account  is  kept,  the  gain  or  loss  is 
determined  as  directed  on  page  18. 

Ex  1.  A.  paid  into  firm  $600,  and  drew  out  $180.  B.  paid  in  $300,  and  drew  out  $120. 
The  undivided  effects  amount  to  $450.  A.  is  f  and  B.  i  gain  or  loss.  Required  the  divi- 
sion  of  the  $450  between  them. 

Ex.  2.  C.  paid  in  $2400,  drew  out  $750. 
D.  If  2100,  //  1100. 
B.        f      2000,        //  120. 

Each  partner's  share  in  the  gain  or  loss  is  equal.     At  the  date  of  dissolution  they  are  owing 
debts,  $2750,  and  have  cash,  notes,  merchandise,  and  ^^^%^^f.^\^f,^^^^^ 
balance  due  each  partner.  Ans.     Due  C  $2110 ;  D.  $1460 ;  E.  $2340. 

'  Ex.  3.     A.  paid  in  $700,  drew  out  $150. 

B.  //        800,        //  290. 

C.  »       500,        '/  400. 

At  the  time  of  their  dissolution  their  cash,  merchandise,  and  other  effects  amount  to 
$1848,  and  they  owe  $950.  The  partners  share  equally  in  the  gam  or  loss^  Required  the 
balance  due  each.  Ans.     Due  A.  $462.67 ;  B.  $422.67 ;  C.  $12.66. 

Ex.  4.     F.  pays  in  $3200,  draws  out  $650. 
G.        »       1624,        //  500. 

H.        If       1500,        If         1450. 
F.  is  to  be  i  gain  or  loss,  and  G.  and  H.  each  h     G-  and  H.  retire  from  the  business. 
The  cash  and  merchandise  on  hand  is  $3800.     Outstanding  debts  due  the  firm  $2850,  upon 

214 


ON  COMMERCIAL  CALCULATIONS.— PART  III. 

which  it  is  agreed  to  allow  10  per  cent,  discount  for  bad  debts.  The  firm  owes,  on  not^s 
md  book  debts,  $3400.  Required  the  sums  F.  will  have  to  pay  G.  and  H.  on  retiring — F. 
to  become  the  owner  of  all  the  effects  of  the  firm  and  assuming  all  their  liabilities,  as  above 
itated.  Ans.  F.  pays  G.  $934.25,  and  H.  pays  F.  $139.75. 

Ex.  5.  A.  was  I  and  B.  ^  gain  or  loss,  and  at  the  time  of  dissolution  B.  agrees  to  take 
the  whole  stock  of  cash,  merchandise,  and  other  effects  of  the  firm,  for  83010.79 — A.  re- 
tiring from  the  business.  By  their  accounts  it  appeared  that  A.  had  drawn  out  $592.82. 
and  paid  in  $1146.78;  B.  had  drawn  out  $103.27,  and  paid  in  $504.92.  No  interest  was 
to  be  charged  on  either  side.     Required  the  sum  B.  must  pay  A.  on  retiring. 

Ans.  $1924.08. 


rOE  EEOTIFYING  DERANGED  DOUBLE  ENTET  BOOKS. 

Rule. — Close  all  the  impersonal  accounts  into  Profit  &  Loss ;  then  place  the  amount  of 
each  side  of  the  Profit  &  Loss  in  the  list  of  Effects  and  Liabilities,  carrying  back  to  the 
Profit  &  Loss  the  difference  between  the  Effects  and  Liabilities.  Close  the  Profit  &  Loss 
into  the  partners'  accounts  in  all  respects  as  in  double  entry.  This  transforms  the  single 
entry  Ledger  into  a  double  entry  one.     (See  pp.  7,  18,  and  19.) 

Ex.  6.  N.  paid  in  $2460,  drew  out  $975. 
0.  II  2660,  //  420. 
P.       n         2800,         //       1100. 

At  the  time  of  dissolution  they  owe  $4500,  and  have  cash,  merchandise,  and  other  effects, 
$8840.  They  also  have  an  expense  account  open  which  is  debited  for  $1260.  Required 
the  balance  due  each  partner,  exhibiting  the  expense  account  closed,  each  partner  sharing 
equally  in  the  gain  or  loss. 

Ans.  Due  N.  $1123.34.    Due  0.  $1878.33.     Due  P.  $1338.33. 

Ex.  7.  Q.  paid  in  $2560,  drew  out  $1075. 
R.       //        2770,         //  520. 

S.        II        2890,         //  200. 

At  the  time  of  settlement  the  firm  owes  $4450,  and  have  cash,  merchandise,  and  other 
effects,  $8780.  Their  expense  account  is  debited  for  $1480.  Profit  &  Loss  is  Dr.  $640, 
and  Cr.  $1400.  Commission  account  is  credited  for  $1850.  The  partners  are  equal  in  <^in 
or  loss.     Required  the  balance  due  each,  and  exhibit  the  impersonal  accounts  all  closed. 

Ans.  Due  Q.  $786.67.     Due  R.  $1551.67.     Due  S.  $1991.66. 

If  there  be  property  accounts  open,  close  them  By  Balance  for  the  value  on  hand,  and 
bring  the  balance  down,  and  carry  the  gain  or  loss  to  the  Profit  &  Loss  account.  Then 
proceed  as  directed  in  the  above  Rule. 

Ex.  8.  N.,  0.,  and  P.,  partners  in  business,  paid  into  the  concern  as  follows: 

N.  paid  in  $2464,  and  drew  out  $985. 
0.       //        2665,  ff  424. 

P.        n        2880,  n  1110. 

At  the  time  of  dissolution  they  owe  $4595.  They  have  merchandise  on  hand  valued  at 
$4400;  cash,  $1840;  notes  and  book  debts  due  them,  $2218.  Their  expense  account  is 
debited  for  $1286.  Their  merchandise  account  is  debited  for  $40050,  and  credited  for 
$39500.  Their  Profit  &  Loss  account  is  debited  for  $1665,  and  credited  for  $1580.  Each 
partner  shares  equally  in  the  gain  or  loss.  Required  the  balance  due  each  at  the  time  of 
dissolution.  Ans.  Balance  due  N.  $936.67.     Due  0.  $1698.67.     Due  P.  $1227.66. 

215 


ir 


DUFF^S  BOOK-KEEPING. 

Ex.  9.  R.  and  S.,  partners  in  business,  desire  to  make  a  dividend  of  their  gain  or  loss 
They  find  their  books  standing  as  follows : 


R.'s  account  is 

S.'s        // 

Merchandise 

Cash 

Bills  Receivable 

Bills  Payable 

Profit  &  Loss 

Commission 

Interest 

R.  Roy 

C.  Page 


Dr. 

// 
It 

II 
II 

w 


$6600 

950 

24000 

13000 

16500 

4800 

700 

880 
2200 


Cr.  ei5000 

H  12000 

w  12500  on  hand,  $11000 

w 

K 
W 
M 

n 
u 


9500 
7500 
8300 
2700 
2200 
1400 

800 


Required  the  Ledger  Specification  of  the  book,  exhibiting  the  balance  shoet  and  each 

partner's  capital. 

Ans.  R.'s  capital,  S9375.     S.'s  capital,  $12025.     Each  partner's  giin,  $975. 

When  the  capital  is  paid  in  at  different  times,  and  it  is  agreed  that  profit  or  loss  is  to  be 
divided  in  proportion  to  the  time  it  is  invested,  the  gain  or  loss  is  found  by  the  preceding 
rules,  and  divided  by  the  following 

Rule. — Multiply  each  partner's  capital  by  the  time  it  was  employed ;  then  add  all  the 
products  together  and  say,  as  the  sum  of  these  products  is  to  each  partner's  product,  so  is 
the  whole  gain  to  each  partner's  share  of  it. 

Ex.  10.  K.,  L.,  and  M.,  partners  in  business,  commencing  1st  January,  1866. 

.  $1200 

900 

.   1100 

800 

.   1100 

1400 

200 

1800 

At  the  time  of  dissolution,  31st  December,  1866,  the  firm  has  cash  and  merchandise  in 
hand,  $5500;  notes  and  book  debts,  $4500.  They  owe  $3200.  The  gain  or  loss  is  to  be 
divided  in  proportion  to  the  amount  of  capital  paid  in  by  each  partner,  and  for  the  time  it 
was  in  the  business.     Required  the  balance  due  each  partner. 

Ans.  K.'s  gain,  $112.14.     Balance  due  him,  $2512.14. 
L.'s     //         98.48.  //  //  2398.48. 

M.'s    //         89.38.  u  M  1889.38. 


Jan. 

K.  paid  in 

March 

//         // 

June 

II        II            .         . 

Aug. 

//    drew  out 

Jan. 

L.  paid  in 

May 
Oct. 

//    drew  out    . 

Jan. 

M.  paid  in 

II    drew  out  nothing 

Ex.  11.  N.,  0.,  and  P.  partners  in  business,  commencing  January  1,  1867. 


Jan.       1, 

N.  pays  in        .         .         . 

.    $600 

March  1, 

H           II                       .            . 

800 

July      1, 

//    draws  out    . 

.      200 

Sept.     1, 

//    pays  in 

600 

Jan.      1, 

0.       //              .         .         . 

.      700 

May      1, 

II         II                  .         . 

400 

June     1, 

II    draws  out    . 

.      200 

Aug.     1, 

//    pays  in 

1200 

Jan.       1, 

P.        1/              .         .         . 

•     1000 

Oct.       1, 

II         II                  ,         . 

600 

ON  COMMERCIAL  CALCULATIONS.— PART  III. 

At  the  date  of  settlement,  December  31, 1867,  the  firm  has  cash  and  other  effects  in  hand, 
$7500,  and  are  owing  debts  to  the  amount  of  $3400.  Required  the  division  of  the  gain  or 
loss,  m  proportion  to  the  amount  and  time  each  partner's  capital  was  invested,  and  the  net 
balance  due  each  partner. 

Ans.     N.'s  net  loss,  $494.83.     Balance  due  him,  §1305.17. 
O.'s       II  488.79.  It  I,  1611.21. 

P.'s       '/  416.38.  #  u  1183.62. 

Ex.  12.     X.  and  Y.  partners  in  business,  commencing  1st  January,  1867. 


Jan.      Ij 

X 

May  1 
June     1 

II 

Sep.  1 
Oct.      1 

Jan.      1 

,     Y 

March  1. 

II 

May  1, 
June     1 

II 

Oct.       1 

1     " 

paid  in         .         .         . 

.    $9000 

•                  •                  •                  • 

drew  out     . 

2400 

.      1800 

*                  •                  •                  • 

paid  in        .         .         . 

2000 
800 

*                  *                  •                  • 

drew  out     . 

3000 
.      1600 

"               •                  •                  •                  • 

paid  in        .         .         . 

1200 
.      1500 

"        .         .         .         . 

8000 

216 


T.  "'^io^l^i^i^l.''^ !o^l^^^  *^^  31st  of  December,  1867,  their  merchandise  account  was 

VT.  ^6^0[){);  Or.  ^JTOOO.     Balance  of  merchandise  on  hand,  per  inventory  $10500      Cash 
on  hand,  $4900.     Bills  Receivable,  $12400.    R.  Draper  owes  on  account,  $2450.     They  owe 

??  ^^oL'"'' n''  i^t^co^'  '^^^  ^""^  ^'  ^^^  ^^  ^^^^^'^*'  ^^^^-  Their  Profit  &  Loss  account  is 
Dr.  $8bb ;  Or.  $1520.  Expense  account  is  Dr.  $2420.  Commission  account  is  Cr  8*^760 
Interest  is  Dr.  $480;  Cr.  $950.  The  gain  or  loss  is  to  be  divided  in  proportion  to'each 
partner  s  capital,  and  in  proportion  to  the  time  it  was  invested.  Required  each  partner's 
share  of  the  gain  or  loss,  the  net  balance  due  each,  and  a  Ledger  specification  exhibiting  the 
closing  ot  all  the  accounts  and  the  balance  sheet. 

Ans.     X.'s  share  net  gain,  $6671.73.     Net  balance  due  him,  $15071  73 
Y.'s     //         //  2748.27.  u  h  12448.27. 

Ex.  13.     J.  Boyd  and  W.  Page,  partners  in  business,  dividing  the  gain  or  loss  equally. 
Page  retires  from  the  firm.     Their  books  are  kept  by  single  entry ;  and  the  partner's  accounts 
stood  as  follows  :--J.  Boyd  is  Dr.  for  sums  withdrawn,  $6200 ;  Cr.  for  sums  paid  in,  $SlU0 
W.  Page  IS  Dr.  for  sums  withdrawn,  $5100,  and  Cr.  for  sums  paid  in,  $7800.     Their  effects 
consist  of 

Cash  which  Page  takes  to  his  account $4400. 

Bills  Receivable  which  he  also  takes  to  acct *     ,    '  ^3700.* 

Mdse.  on  hand  which  Boyd  takes  to  his  acct.        .         .         .         .     '    .  560o! 

Book  debts  which  he  also  takes  to  acct.  .         .         .  *     ,    *  G30o! 

They  owe  on  notes,  which  Boyd  assumes  .         .         .         .     '    .  2200 

They  owe  Book  debts,  which  he  assumes  .         .         .*.'.*  lioo! 

Required  which  partner  is  indebted  to  the  other,  and  what  amount  ? 

Ex.  14.  A.  became  embarrassed,  and  failed  in  business.  His  effects  were  sold  off  at 
auction,  and  the  net  proceeds,  $7770,  paid  over  by  the  auctioneer  to  the  assignee  \  was 
indebted  as  follows,  viz :  o  * 

To  B.  on  notes  and  book  account         .         .     $4800 
'/   C.  on  account  ....  5600 

^    .        ..       .     "   ^'  " 3600 

J^ach  creditor  is  to  receive  in  proportion  to  the  amount  of  his  claim.     The  assi<-nee*s  com 
mission  18  5  per  cent,  on  the  amount  paid  over  to  the  creditors.     Required  the  amount  to  ^e 
received  by  each.  Ans.     B.  receives  $2537.14. ' 

C.  //         2960. 

D.  »         1902.86. 
217 


(I" 


h  -f 


1    i 


DUFF'S  BOOK-KEEPING. 


ON  THE  SETTLEMENT  OF  ACCOUNTS. 

Referring  to  our  directions  for  making  out  accounts,  (page  114,)  we  have  only  to  observe 
that,  under  the  date  of  the  semi-annual  settlement,  spare  space  is  usually  left  in  the  Day-Boox 
to  insert  entries  of  all  omissions  that  are  discovered  upon  exchanging  accounts  current. 
These  omissions  are  entered  and  posted  up  under  date  of  the  last  day  of  the  last  month  s 
business  embraced  in  the  account  for  the  semi-annual  settlement;  but  the  payment  must 
appear  under  the  date  upon  which  it  takes  place.  To  enter  or  post  it  under  a  back  date 
would  derange  the  cash  account.  i  i    n 

In  those  cases  in  which  we  expect  to  receive  the  balance  of  the  account  rendered  betore 
any  new  transactions  take  place,  it  is  unnecessary  to  balance  the  account  on  the  Ledger  until 
we  can  post  up  the  payment  and  close  the  account.  But  if  new  transactions  take  place  be- 
tween the  parties  before  the  payment  of  the  balance  of  jthe  old  account  is  made,  it  will 
^'enerally  be  found  more  convenient  to  balance  the  old  account  in  the  Ledger,  and  bring 
down  the  balance  into  new  account,  in  which  an  entry  of  the  payment  will  appear  when 
made.  Those  who  prefer  excluding  this  old  balance  and  its  payment  from  the  next  account 
current,  can  star  out  the  entries  on  the  Ledger,  as  seen  in  the  following  specification,  and 
leave  the  amounts  out  of  the  new  account  current.  Loans  of  money,  and  other  transient 
matters,  may  be  left  out  of  the  account  current  by  the  same  means.  (See  Pryor's  account, 
page  167.) 


Br. 


E.  OARVER. 


Or. 


1867. 

Jan. 
Feb. 
Mar. 
June 


June 

July 

Aui:". 

Sep. 

Oct. 

Dec. 


17 

1 

10 

28 


To  Merchandise 


//    Sundries 


30 
7 
4 

30 

21 
7 

30 


To  Bal.  ^  acct.  rca'd 

//  Merchandise 

ir  Order  to  F.  Oaks 
//         w  to  K.  Kankin 

"  Merchandise 

If  Order  to  Winters 

'/  Merchandise 


7 

14 
20 
27 


416 
4200 

780 
1160 


6557 


X  1222 


30 
39 
46 
56 
69 
84 


480 
79 

130 

494 
73 

360 


40 
20 

80 


40 


20 

74 
40 
70 
30 
60 


1867. 

Feb. 

Mar. 
June 


4 

28 
8 


30 


July  1 
17 
20 


Aug. 


// 


By  Cash 

Bills  Receivable 
Merchandise 
Bal.  to  new  acct. 


By  Merchandise 
If    Cash  on  old  acct. 
II    31y    order    per  | 

Ryan  &  Co.     j 
II    Cash  in  full  for 

old  acct. 


! 


15 
19 
20 


416 
4000 

918 
1222 


6557 


40 

80 
20 

40 


34X 


33 


730 

800 

140 


38>'    422 


20 


In  business  a  note  is  generally  taken  for  such  a  balance  as  the  above,  and  the  account  is 

immediately  closed.  ,       .,     i   i  n  ^i 

Between  houses  keeping  interest  accounts  with  each  other,  unless  the  balance  ot  the  ac- 
count is  paid,  with  a  note  or  money,  on  presentment,  it  and  the  other  payments  will  appear 

in  the  next  account.  «  i     />n     i   -r.    i    i     ^  •         i. 

On  pacre  146  will  be  found  a  practical  exemplification  of  the  Check  Book,  kept  in  such  a 
manner  a^'s  to  check  both  sides  of  the  Bank  account  in  the  Ledger.  We  shall  now  add  some 
additional  directions  for  settling  with  your  banker. 

When  you  get  your  Pass  Book  balanced,  if  it  contains  any  charges  for  discounts,  commis- 
sions, or  any  entries  not  in  your  books,  enter  them  both  on  your  Check  Book  and  Day-Book. 
If  all  your  checks  have  not  been  returned,  enter  the  numbers  and  amounts,  in  red  ink,  on  the. 
^  218 


ON  COMMERCIAL  CALCULATIONS— PART  III. 

Dr.  side  of  your  Check  Book  and  Ledger,  and  if  all  your  work  is  right,  the  balance  in  de- 
posit will  close  the  account.  Close  the  account,  and  bring  down  the  balance  on  the  Cheek 
Book  and  Ledger  in  the  usual  manner,  and  bring  down  the  outstanding  checks  in  the  same 
manner  on  the  Cr.  side.  To  make  the  matter  clearly  understood,  we  subjoin  a  specification 
of  it  on  a  Check  Book : 


DATE. 


1867. 

June 
July 

August 

Sept. 


Out,  175 
177 


Sept. 


30 
5 

12 
1 

19 
1 
4 
7 

24 


30 


AMOUNTS  DEPOSITED. 

DATE. 

1867. 

Bro.  forw'd 

4248 

10 

June 

30 

Deposited 

800 

July 

2 

// 

1300 

5 

// 

400 

Aug. 

2 

// 

1140 

Sept. 

9 

// 

660 

90 

13 

// 

840 

40 

Sept. 

30 

II 

521 

24 

II 

216 

16 

$600. 

970. 

1570 

80 
80 

Sept. 

30 

1 

11196 

Balance 

5095 

NAME. 

No. 

AMOUNT. 

Checks  out, 

1100 

40 

R.  Hill, 

174 

900 

VV.  Wood, 

175 

600 

R.  Cox, 

176 

1100 

60 

B.  Ray, 

177 

970 

W.  Boon, 

178 

1430 

Balance, 

5095 

80 

11196 

80 

Checks  out, 

1570 

CHECKS. 


You  will  understand  that  the  above  $5095.80  represents  the  balance  made  by  the  banker 
on  your  Pass  Book;  but  he  made  that  balance  before  two  of  your  checks  (Nos.  175  and  177) 
were  presented ;  consequently  your  books  will  not  show  the  same  balance  until  the  amount 
of  these  checks  is  counterentered.  This  should  be  done  in  red  in  the  old,  and  black  in  the 
new  account. 

I  feel  confident  that  no  business  man  will  try  this  form  of  Cheek  Book,  and  not  prefer  it 
to  the  old  practice  of  entering  Checks  and  Deposits  all  in  one  column. 

Young  accountants  will  find  the  advantage  of  having  their  Pass  Books  frequently  balanced. 
In  a  business  of  any  magnitude  it  should  be  done  monthly — never  at  longer  periods  than 
three  months. 


EXERCISES   IN   INVOICES. 

See  Forms,  page  59. 

Ex.  1.  Sold  Draper,  Son  &  Co.  July  6,  1867 :  1  piece  superfine  Black  Broadcloth.  Xo. 
427,  19''  yds.  @  $3.62^  1  end,  10^  yds.  Green  do.  No.  401,  @  $3.62*.  1  end  Blue  do. 
No.  644,  10  yds.  @  S3.62i  2  pieces  Black  do.  Nos.  4202  and  4203.  18  and  18'^  yds.  (aX 
$3.31^.  4  ends  Vesting,  6^,  8^  9S  and  7^  yds.  @  $2.50.  2  pieces  do.  14  and  16  yds.  @  §3. 
Required  the  invoice,  exhibiting  the  correct  amount.  Ans.     S434  ^Q 

Ex.  2.  Sold  King,  Wood  &  Co.,  July  10, 1867, 12  doz.  Black  Silk  Hose,  @  810.  9  dox. 
Ladies'  best  Black  Kid  Gloves,  @  S7.62i  4  doz.  Men's  do.  @  $9.87i  2  doz.  do.  out  sizes. 
@  $11.50.  6  doz.  Men's  fancy  colored  do.  @  $9.75.  8  doz.  Children's  do.  @  $4.62*. 
6  doz.  do.  Thread,  @  $2.  12  doz.  Men's  fancy  Silk  Half  Hose,  @  $3.75.  6  doz.  do.  Black 
Ribbed,  @  $4.    Required  the  invoice,  exhibiting  the  correct  amount.        Ans.    $427  63 

219 


^ 


•  I 


■M 


'  t 


DUFF'S  BOOK-KEEPING, 

Ex.  3.  Sold  George  Gains  &  Co.  July  30,  1867  :  10  doz.  LyelFs  Shovels,  @  $7.75.  15 
doz.  Bowman's  Spades.  @  $10.75.  5  doz.  do.  Cast  steel,  @  $12.50.  5  boxes  Derby  Scythe 
Stones,  @  83.50.  20  doz.  Grass  Scythes,  @  $11.50.  12  doz.  Corn  do.  @  $13.50.  3  Mouse- 
hole  Anvils,  120,  230,  and  330  lbs.  @  12  cts.  ^  ft).  3  Birmingham  Anvils,  100,  150,  and 
250  ft)s,  @  8  cts.  "^  ft).     Required  the  invoice  and  correct  amount.  Ans.     $832.35. 

Ex.  4.     Sold  Richard  Carver  &  Son,  July  31,  1867. 

At  5%  discount*— 55  Patent  Balances,  @  $10.  30  doz.  Patent  Coffee  Mills,  @  $5. 
20  doz.  Lippincott's  Axes,  at  $10.     25  doz.  do.  Hatchets,  @  $4.     30  doz.  do.  @  $3.75. 

At  10%  discount— 30  Roland's  6-feet  Mill  Saws,  @  $3.75.  25  do.  6^feet  Cross-cut 
Saws,  @  $3.75.     4  doz.  Hand  Saws,  @  $7.50.     6  doz.  do.  @  $9.     4  doz.  do.  @  $6.50. 

The  followincr  are  net— 10  gross  Gilt  Vest  Buttons,  of  each  No.  479,  @  $1 ;  566,  @  1.20 ; 
667,  @  $1.30 ;  494,  @  $1.40 ;  993,  @  $1.50 ;  337,  @  $1.60.    2  doz.  Rodgers'  Penknives, 
of  each  No.  4200,  @  $7 ;  4900,  @  $8 ;  4300,  @  $9 ;  4400,  @  9.50.     12  doz.  best  balance- 
handled  Ivorv  Table  Knives  and  Forks,  @  $10.50.     Required  the  invoice  and  amount. 
^  Ans.    $1614.49. 

Ex.  5.  Sold  David  Chesman  &  Co. :  4  hhds.  Sugar,  each  1146,  1104,  1107,  and  1003 
ft)s  gross,  tare  10%,  @  5  cts.  16  boxes  Mould  Candles,  56  R)s  each,  @  10^  cts. ;  boxes 
25  cts.  each.  30  boxes  Bloom  Raisins,  @  $3.  40  doz.  Corn  Brooms,  @  $2.  2  chests, 
84  ft)s  each,  Y.  H.  Tea,  @  68  cts.  6  half  chests  do.  240  lbs,  @  65  cts.  Required^the 
invoice  and  amount.  -^NS.     $734.52. 

Ex.  6.  Sold  Mason  &  Sands  :  6  Detached  Lever  Silver  Watches,  @  $12.  8  do.  fe  $15. 
5  do.  Gold  do.  @  $40.  5  Duplex  Lever  Gold  do.  @  $65.  6  do.  do.  @  $75.  IMoz.  Gold 
Spectacles,  @  $60  per  doz.  ^  doz.  do.  @  $75  per  doz.  3  doz.  Silver  do.  @  $10.  2  doz. 
do.  (a)  $15.  1  doz.  Eight-day  Clocks,  $65.  k  doz.  Church  Clocks,  @  $80.  Required  the 
invoice.  Ans.    $1439.50 


ON  COMMERCIAL  CALCULATIONS.— PART  III. 

Commission  and  guarantee,  5  per  cent.  Storage,  $66.  Required  the  Journal  entry  for 
closing  the  sales ;  carrying  Hay's  net  proceeds  to  his  credit. 

Ex.  7.  Suppose  the  above  total  sales  to  be  $6000.  Our  half,  first  cost,  the  same,  ($6000). 
No  charges  are  made.  Required  the  Journal  entry  to  settle  the  transaction,  supposing  we 
give  Hay  our  note  at  60  days  for  his  share  of  the  net  proceeds. 

Ex.  8.  Suppose  our  half,  first  cost,  and  the  total  sales  to  be  equal,  as  in  the  last  problem 
— $6000  each— and  the  after  charges.  Storage,  $30 ;  Commission  and  guarantee,  5  per  cent. 
Required  the  Journal  entry  to  close  the  sales,  supposing  Hay's  net  proceeds  to  be  paid  him 
in  cash. 

Ex.  9.  Suppose  our  half,  first  cost,  $9000.  Total  sales,  only  $8000.  Commission  and 
guarantee,  5  per  cent.  Storage,  $28.  Required  the  Journal  entry  to  close  the  account,  sup- 
posing  we  give  Hay  an  order  on  James  Carter  for  his  share  of  the  net  proceeds. 

Ex.  10.  Our  half,  first  cost,  was  ^11500.  Charges  posted,  $500.  Total  sales,  $18000. 
After  charges.  Storage,  $84 ;  Commissi-  and  guarantee,  5  per  cent.  The  inventory  of  the 
joint  property  unsold  is  $8000.*  Required  the  Journal  entry  to  close  the  account,  sup- 
posing Hay's  i  net  proceeds  to  be  carried  to  his  account. 

Ex.  11.  Suppose  our  half,  first  cost,  $10500.  Charges  posted,  $560.  Total  sales,  $15000. 
After  charges.  Commission  and  guarantee,  5  per  cent.;  Storage,  $48.  Property  on  hand, 
$6200.  Required  the  Journal  entry  for  closing  the  account,  paying  over  Hay  his  half  net 
proceeds  in  cash. 

Ex.  12.  Our  half,  first  cost,  was  $14800.  Charges  posted,  $150.  Total  sales,  $7800 
Joint  property  on  hand,  $13200.  After  charges,  viz. :  Storage,  $64 ;  Commission  and  guar- 
antee, 5  per  cent.  Required  the  Journal  entry  to  close  the  account,  supposing  it  to  include 
our  note  to  Hay  for  his  half  net  proceeds. 

Ex.  13.  Our  half,  first  cost,  was  $9000.  Charges  posted,  $8800.  Commission,  5  per  cent. 
Storage,  $24.  Total  sales,  $4400.  Joint  property  unsold,  $2200.  Required  the  Journal 
entry  to  close  the  account  and  carry  Hay's  share  of  the  deficiency  to  his  account. 


EXAMINATION   ON 

SETTLING  CONSIGNMENTS  AND  JOINT  ACCOUNTS. 

See  Questions  25  and  26,  page  41. 

Ex.1.  William  Mount's  sales  are  completed.  Total  sales,  $3420.  Charges  posted, 
$780.  After  charges,  viz. :  Commission  and  guarantee,  5%.  Storage,  $20.  Required  the 
Journal  entry  to  close  the  sales  on  the  Ledger,  supposing  the  net  proceeds  to  be  carried  to 

Mount's  credit.  A^^,r.o      »^ 

Ex.  2.     Gr.  Glen's  sales  are  effected  to  amount  of  $14040.    Charges  posted,  $1729.    Alter 

charges,  viz. :  Commission  and  guarantee,  5%.    Storage,  $56.    Required  the  Journal  entry 

for  closing  the  sales,  supposing  we  pay  over  the  net  proceeds  at  the  same  time  in  cash. 
Ex.  3.     Effected  sales  for  David  Carman,  $4660.    Charges  posted,  $4440.    After  charges 

are.  Commission,  5  per  cent. ;  Storage,  $36.    Required  the  Journal  entry  to  close  the  sales. 
Ex.  4.     Effected  sales  of  Michael  May's  goods,  $9840.     Charges  posted,  $9910.     After 

charges.  Commission  and  guarantee,  5  per  cent. ;  Storage,  $45.    Required  the  Journal  entry 

to  close  the  sales. 

Ex.  5.  Completed  sales  of  merchandise  on  joint  account  with  Wm.  Hay,  each  one-half. 
Our  first  cost  was  $2400.  Total  sales,  $6400.  Charges  posted,  $800.  After  charges.  Com- 
mission and  guarantee,  5  per  cent.  Storage,  $18.  Required  the  Journal  entry  to  close 
the  sales,  carrying  Hay's  net  proceeds  to  his  account. 

Ex.  6.  Completed  sales  of  merchandise  on  joint  account  with  Wm.  Hay,  each  one-half. 
Our  half,  first  cost,  $6000.     Total  sales,  $12600.     Charges  posted,  $490.     After  charges, 


EXERCISES  IN  DISCOUNTING  BUSINESS  PAPER. 

Ex.  1.  Received  Hall  Smith's  note  for  $1200,  dated  August  31,  1867,  at  6  months,  en- 
dorsed by  James  Betts.  Discounted  the  same  December  27.  Required  the  note  the 
unexpired  time,  and  discount.  ' 

Ex.  2.  Received  J.  W.  Frost's  note  for  $900,  dated  October  28,  1867,  at  4  months, 
endorsed  by  W.  Summer.  Discounted  December  13.  Required  the  note,  unexpired  time' 
and  discount.  ' 

Ex.  3.  Received  A.  T.  Howden's  note  for  $1800,  dated  October  31,  1867,  at  4  months, 
endorsed  by  D.  Bowers.  Discounted  November  30.  Required  the  note,  the  unexpired 
time,  and  discount. 

Ex.  4.  Received  J.  Warden's  note  for  $1266,  dated  March  31,  1867,  at  three  months, 
endorsed  by  I.  N.  Forner.     Discounted  May  31.    Required  the  unexpired  time,  and  discount' 

Ex.  5.  Received  R.Manly's  note  for  $624,  dated  March  30, 1867,  at  3  months,  endorsed 
by  J.  Carter.     Discounted  May  1.     Required  the  note,  the  unexpired  time,  and  discount. 

^  Ex.  6.  Received  W.  S.  Haven's  note  for  $1566,  in  my  favor,  dated  April  30,  1867,  at 
ninety  days.     Discounted  June  26.     Required  the  note,  the  unexpired  time,  and  discount 

Ex.  7.  Received  Hay  &  Wood's  note,  in  my  favor,  for  $1824,  dated  August  30,  1867.  at 
ninety  days.    Discounted  September  30.    Required  the  note,  unexpired  time,  and  discount. 

Ex.  8.  Received  H.  Winslow's  note,  in  my  favor,  for  $966,  dated  December  30,  1867.  at 
ninety  days.   Discounted  February  28.   Required  the  note,  the  unexpired  time,  and  discount 


*  Short-extend  each  discount,  and  from  the  marginal  addition  subtract  the  discount,  full-extending  the  net  amounts.    Leea 
than  five  mills  count  nothing  in  the  extensions ;  five  mills  and  upward  count  another  cent. 

220 


*  See  Note  4, 1st  Co.  Sales,  page  109. 

221 


DUFF'S  BOOK-KEEPING. 

Ex.  9.  A  Judgment  Note.— (January  10,  p.  70.) 
S3000.^^.  ^^^  York,  January  10,  1867. 

Thirty  days  after  date,  for  value  received,  I  promise  to  pay  to  the  order  of 
P  Duff  THREE  THOUSAND  DOLLARS,  and  in  case  of  non-payment  at  maturity  I  hereby 
authorize  any  attorney  in  any  court  in  the  United  States  or  elsewhere  to  enter  ^P  P^^^^^^^^^^ 
upon  the  same,  without  stay  of  execution  or  benefit  of  any  exemption  law,  with  costs  and  five 
per  cent,  attorney's  fees  for  collecting.  ^^^^^^  Edwards. 

N0TK.-If  the  holder  wishes  to  enter  judgment  on  receipt  of  this  note,  leave  out  the  clause,  "  and  in  case  of  non-payment 
at  maturity." 


1 

2. 


4. 
5. 

6. 

7. 

8. 

9. 
10. 
11. 

12. 

13. 

14. 
15. 

16. 

17. 

18. 

19. 

20. 

21. 

22. 
23. 

24. 

25. 

26. 


FINAL  EXAMINATION. 

What  is  the  fundamental  rule  in  Double  Entry  Book-Kceping  ?    (See  note  1  page  260 
What  constitutes  the  distinction  between  Single  and  Double  Entry?     (Note  1,  l^iUs 

HowTthe  clpr/dfspJJed  of  in  opening  books  by  Single  Entry,  in  an  individual  busi- 
ness?    (Notel,  p.  7.) 

How  in  Double  Entry  ?     (Notes  1  and  2,  Stock  acct.  p.  66.) 

How  is  the  capital  disposed  of  in  opening  Partnership  Books  by  Single  Entry  ?  (Note 
o  Ti  'r  ^ 

How  in  Double  Entry  ?     (Note  1,  Duff's  acct.  p.  131.)  ^  i.  .^^  TJnnhlP 

Is  there  any  difference  in  the  rule  for  conducting  personal  accounts  in  Single  and  Double 
Entry  ?     (Notes  3  and  4,  p.  7,  and  3  and  4,  p.  26.)  „     ^      .^_        .        _        ,  ^.^ 

Is  there  any  difference  in  recording  Orders,  Drafts,  &c.?     (Note  5,  p.  7,  and  Rule 

Whatsis  the  use  of  the  Cash-Book  ?     (Note  1,  p.  9,  and  note  1,  p.  530 

Where  are  all  cash  transactions  generally  first  entcr-d  t     (Note  b  p.  06.) 

What  is  done  with  the  Cash-Book  entries  as  they  are  transferred  to  the  Day-15ook  or 

Journal?     (Note  7,  p.  530  .    ^^      .  o     rx^  ,    a        rq  ^ 

How  do  we  ascertain  the  balance  of  money  in  hand?     Cf^o^?'.?' 7->',^  .f.  ^.  .. 
How  are  the  Ledger  titles  for  money  received  and  paid  exhibited?     (N.  10  and  11, 

How  are  entries  made  on  the  Day-Book ?     (Note  5  p.  24) 

What  is  meant  by  posting  a  Day-Book  or  Journal?     (Note  7,  p.  ^4.) 

What  is  the  first  thing  to  be  done  after  the  Day-Book  or  Journal  is  posted  ?     (Note  4, 

How  d^thf  partners' acc^oun^  close  after  the  Profit  &  Loss  is  closed  into  them  ?  (Note 
2   Duff's  account,  p.  15,  and  note  4,  p.  130.)  o    /xt  .   i  n     j     > 

What  does  the  final  closing  entry  of  the  partners'  account  represent?  (Notel,Gordon  s 
loot  T)  15;  note  1,  Balance  acct.  p.  134.)  ,xt  ,    «  -r»  i 

What  wSi  it  represent  if  he  draws  out  more  than  he  has  in  the  firm  ?     (Note  2,Balance 

When'au  aect.'has  filled  up  its  space,  how  is  it  continued  to  a  new  page?     (Note  2, 

Wnod's  acct  D.  15,  and  note  1,  p.  102.) 
How  ^oiau  account  're-open  on  the  same  page  ?     (Note  2,  Hay's  acct.  p.  If,  and  note 

Upon  which  side  of  an  account  is  the  final  closing  entry  made  ?     (Sect  1,  p.  18.) 
Why  iTote  the  transfers  on  the  face  of  the  Ledger  folio  ?     (Note  6,  p.  18,  and  note  5. 

Whafare^he  objec^t^ons  to  making  original  entries  affecting  the  personal  accounts  on 

the  Led-er,  without  a  Day-Book  entry ?     (Note  7,  p.  18,  and  note  3,  p.  25)     . 
What  1^  the  general  rule  for  finding  the  gain  or  loss  in  Single  Entry  Book-Keeping? 

How  isit  found  in  Double  Entry  ?     (Note  4,  Profit  &  Loss  acct.  p.  350        • 

222 


FINAL  EXAMINATION.— PART  III. 

27.  What  balances  are  brought  down  in  re-opening  Single  Entry  books  ?     (Note  l,p.  190 

28.  What  is  meant  by  closing  an  account?     (Note  6,  p.  23.) 

29.  Why  not  carry  Expense,  Commission,  and  Exchange  directly  to  Profit  &  Loss,  and  avoid 

opening  these  accounts?     (Note  4,  p.  24,  and  note  3,  p.  129.) 

30.  What  is  meant  by  checking?     (Note  2,  p.  32.) 

31.  What  is  the  use  of  the  Journal  ?     (6,  p.  25.) 

32.  How  may  this  book  be  dispensed  with  ?     (6,  p.  25,  and  5,  p.  91.) 

33.  What  other  title  would  better  express  the  nature  of  the  Stock  account  ?    (Note  1.  p.  26.) 

34.  Why  drop  the  ciphers  in  the  cent  column  ?     (Note  8,  p.  27.) 

35.  How  do  we  show  how  far  the  Day-Book  is  Journalized  ?     (7,  p.  29.) 

36.  How  do  we  show  how  far  the  Journal  is  posted  into  the  Ledger  ?     (6,  p.  29.) 

37.  What  is  to  be  done  when  the  Journal  is  posted  ?     (Note  2,  p.  32.) 

38.  What  must  be  done  before  attempting  to  close  the  Ledger  ?     (Note  3,  p.  32.) 

39.  What  is  the  use  of  the  Trial  Sheet?     (Note  1,  p.  36.) 

40.  All  closing  entries  for  the  Balance  account  are  written  red,  while  Profit  &  Loss,  and 

all  others,  are  black.     Why  is  this  distinction?     (Note  6,  Stock  acct.  p.  33,  and 
note  7,  Merchandise  acct.  p.  33.) 

41.  What  composes  the  Dr.  and  Cr.  sides  of  Stock  ?     (Notes  1  and  2,  Stock  acct.  p.  o3.) 

42.  What  composes  the  Dr.  and  Cr.  sides  of  Merchandise  ?     (Notes  1  and  2.  Mdse.  acct. 

p.  33.) 

43.  How  does  this  account  close  if  all  the  property  be  sold  ?     (Note  3,  Mdse.  acct.  p.  33, 

and  Kule  2,  p.  99.) 

44.  How  does  it  close  if  part  of  the  property  remain  in  hand  ?     (Note  5,  Mdse.  acct.  p.  33, 

and  Rule  2,  p.  99.) 

45.  What  is  an  Inventory,  and  where  is  it  entered  ?     (1st  entry,  pp.  59,  61, 137,  and  139.) 

46.  What  composes  the  Dr.  and  Cr.  sides  of  Bills  Receivable  account?    (Note  1,  Bills  Rec. 

acct.  p.  33.) 

47.  What  does  the  difference  between  the  two  sides  represent  ? 

48.  How  does  this  account  always  close  ? 

49.  What  do  the  Dr.  and  Cr.  sides  of  the  Cash  account  represent?     (Cash  acct.  p.  34. ^ 

50.  What  does  the  difference  between  the  two  sides  represent  ? 

51.  How  does  this  account  always  close  ? 

52.  What  does  the  difference  between  the  sides  of  Bills  Payable  represent  ?     (Bills  Pay- 

able acct.  p.  34.) 

53.  How  does  this  account  always  close  ? 

54.  If  the  Dr.  side  be  $4000,  and  the  Cr.  side  S6000,  what  does  the  difference  represent  ? 

55.  How  do  all  personal  accounts  close  ?     (Hay's  acct.  note  2,  p.  34.) 

56.  How  do  property  accounts  close  if  all  or  part  of  the  property  be  on  hand  ?     (Case  2. 

Rule  2,  p.  99.) 

57.  What  do  the  Dr.  and  Cr.  sides  of  Profit  &  Loss  exhibit  ?     (Profit  &  Loss  acct.  p.  35.) 

58.  What  accounts  close  into  it?     (Note  2,  Profit  &  Loss,  p.  35;  Note  1,  Bell's  acct.  p. 

132;  Exchange  acct.  p.  133.) 

59.  When  is  this  account  closed,  and  into  what  account  or  accounts  does  it  close  ?     (Note  3. 

Profit  &  Loss,  p.  33;  Sect.  4,  p.  130;  Note  2.  Profit  &  Loss,  p.  134.) 

60.  What  is  Expense  account  Dr.  for,  and  how  does  it  close  ?    (Note  1,  Exchange  acct.  p.  133.) 

61.  What  is  the  Exchange  account  Dr.  and  Cr.  for,  and  how  does  it  close  ?     (Note  1,  Exch. 

acct.  p.  133.) 

62.  What  is  the  Interest  account  Dr.  and  Cr.  for,  and  how  does  it  close  ?     (Note,  Interest 

acct.  p.  168.) 

63.  What  is  the  Suspended  List  debited  for,  and  how  does  it  close  ?     (Note  6,  p.  130 ;  Not«^ 

7,  p.  129;  Note  1,  p.  134) 

64.  What  is  to  be  done  when  a  suspended  account  is  paid  ?   (Note  1,  Martin's  acct.  p.  132.) 

65.  What  do  the  Dr.  and  Cr.  sides  of  Balance  account  represent  ?     (Balance,  p.  35.) 

66.  If  the  Dr.  side  be  S15000,  and  the  Cr.  side  $10000,  what  does  the  difference  rej^rcsent  ? 

(Note  4,  Balance  acct.  p.  35.) 

67.  If  the  Drs.  bo  $8000,  and  Crs.  $12000,  what  does  the  difference  represent?     (Note  3, 

Balance  acct.  p.  35.) 

223 


',i 


f 


68. 

69. 
70. 
71. 

72. 
73. 

74. 
75. 
76. 

77. 
78. 

79. 

80. 
81. 
82. 

83. 
84. 
85. 

86, 

87. 
88. 
89. 

90. 
91. 

92. 

93. 

94. 

95. 

96. 

97. 

98. 

99. 
100. 
101. 
102. 
103. 
104. 
105. 
106. 
107. 

108. 
109. 
110. 


DUFF'S  BOOK-KEEPING. 

What  precaution  is  necessary  in  closing  this  account  ?     (Balance  acct.  p.  35,  and  note 

4,  p.  130.) 
Where  should  this  account  he  made  ?     (Sect.  1,  p.  19.) 
What  is  meant  by  re-opening  a  Ledger?     (Note  1,  p.  113.) 

Suppose  there  be  not  sufficient  space  under  the  old  account  to  re-open  ?    (Note  1,  p.  113.) 
How  are  the  daily  average  sales  ascertained  for  any  given  time  ?     (Note  14,  p.  36.) 
How  is  the  average  gain  per  cent,  ascertained  upon  sales  of  Merchandise  when  all  is  sold  ? 

(Note  15,  p.  36.) 
How  if  part  of  the  Merchandise  remain  on  hand  ? 

What  entry  is  made  of  an  invoice  of  a  consignment  received?     (Note  21,  p.  41.) 
What  is  the  rule  for  keeping  account  of  consignments  received  ?     (Eule  10,  p.  41.) 
When  the  property  is  sold,  how  do  we  find  the  net  proceeds?     (Note  25,  p.  41.) 
If  the  owner  of  this  consignment  draw  on  you  on  account  of  these  sales,  what  account  do 

you  debit  for  his  draft?     (Note  29,  p.  41.) 
How  do  you  keep  account  of  property  which  you  consign  to  others  for  sale  on  your  own 

account?     (Rule  11,  p.  41.) 
If  you  draw  on  the  consignee  on  account  of  a  consignment?     (Note  31,  p.  41.) 
What  are  Joint  Accounts  ?     (Note  1,  p.  42.) 
What  title  does  the  manager  of  a  joint  speculation  give  the  account  in  his  books? 

(Note  4,  p.  42.) 
What  title  do  the  silent  partners  use  in  their  books  ?     (Note  9,  p.  42.) 
What  is  the  general  rule  for  conducting  joint  accounts  as  manager  ?     (Rule  12,  p.  43.) 
How  do  the  other  partners  keep  an  account  of  their  investments  in  the  speculation  ( 

(Note  1,  2d  Co.  Shipment  to  London,  p.  Ill,  and  note  9,  p.  42.) 
How  does  the  manager  find  the  net  proceeds  when  all  the  property  is  sold?     (Note  1, 

p.  43.) 
How  if  part  of  the  property  remains  on  hand  ?     (Note  4,  1st  Co.  Sales,  p.  109.) 
How  does  the  manager  find  his  net  gain  or  loss  ?     (Note  13,  p.  43,  and  note  3,  p.  80.) 
What  is  the  rule  for  determining  the  maturity  of  an  acceptance  or  note  having  its 

running  time  in  days  ?     (Note  1,  p.  45.) 
When  the  running  time  is  months?     (Note  3,  p.  45.) 
When  will  one  day's  advance  in  the  date  of  a  note  give  three  or  four  days'  advance  in 

the  time  of  payment?     (Note  1,  p.  46.) 
When  will  one  day's  advance  in  the  date  give  two  days'  advance  in  the  maturity  ?    (Note 

2,  p.  46.) 
Upon  what  occasions  may  three  or  four  notes,  dated  on  different  days,  having  the  same 

running  time  in  months,  all  become  due  on  the  same  day?     (Note  1,  p.  47.) 
When  will  two  notes,  dated  on  different  days,  having  the  same  running  time  in  months, 

become  due  on  the  same  day  ?     (Note  2,  p.  47.) 
What  ought  to  be  done  with  notes  which  remain  in  hand  over  due  ?     (Note  4.  p.  52,.) 
How  do  we  enter  a  note  on  the  Bill  Book  when  received  ?     (Note  1,  p.  49.) 
How  when  passed  away  ?     (Note  2,  p.  49.) 
What  is  the  use  of  the  Invoice  Book  ?     (Note  1,  p.  58.) 
Where  is  the  first  entry  of  an  Invoice  ?     (Note  3,  p.  58.) 
What  particulars  of  an  Invoice  is  required  in  the  Day  Book  ?     (Note  3,  p.  58.) 
What  is  the  use  of  the  Sales  Book  ?     (Note  1,  p.  62.) 

When  this  book  is  not  kept,  where  are  the  particulars  of  the  sales  entered  ?    (N.  3,  p.  62.) 
How  is  the  Commission  Sales  Book  kept?     (Note  1,  p.  65.) 
What  composes  its  Dr.  and  Cr.  sides  ?     (Notes  2  and  3,  p.  65.) 
Where  do  the  entries  pass  from  this  book  ?     (Sect.  3,  p.  66.) 

How  is  the  net  proceeds  found,  and  how  is  it  disposed  of  when  found  ?     (N.  2,  p.  66.) 
How  do  you  enter  a  re-consignment  on  the  Commission  Sales  Book  ?     (Entry  Feb.  12, 

Commission  Sales  Book,  p.  67.) 
Repeat  the  rule  for  equating  time  on  account  of  sales.     (Rule,  p.  68.) 
Repeat  the  rule  for  the  Compound  Equation.     (Rule,  p.  116.) 
Where  do  we  obtain  the  materials  for  opening  a  new  set  of  books  in  continuation  of 

old  ones  ?     (Note  1,  p.  69.) 

224 


111. 

112. 
113. 
114. 
115. 
116. 
117. 
118. 

119. 
120. 
121. 
122. 
123. 
124. 
125. 
126. 
127. 
128. 
129. 
130. 
131. 
132. 
133. 
134. 


FINAL  EXAMINATION.— PART  III. 

How  can  a  new  set  of  books  be  opened  from  old  ones  without  passing  the  contents 

through  the  Day  Book  and  Journal  ?     (Sect.  3.  p.  19.) 
What  is  the  general  rule  for  correcting  errors  in  the  Ledger  ?     (Notes  2  and  5.  p.  98. 
What  is  the  general  rule  for  correcting  errors  in  the  Journal  ?    (Notes  10  and  2,  p.  98. 
How  are  errors  corrected  in  the  Day  Book  ?     (Notes  11  and  2,  p.  98.) 
What  precaution  is  necessary  in  indexing  accounts?     (Note  1.  p.  100.) 
Where  do  we  obtain  the  particulars  for  an  account  current?     (Note  3,  p.  114.) 
Where  do  we  obtain  the  particulars  for  an  account  of  sales?     (Note  1,  p.  117.) 
How  are  the  Cash  and  Merchandise  accounts  posted  from  the  six-column  Day-Book  or 

Journal?     (Note  7,  p.  124,  and  note  2,  p.  161.) 
How  can  the  Merchandise  Drs.  be  posted  direct  from  the  Invoice  Book?    (N.  4.  p.  139. 
How  may  the  Merchandise  Crs.  be  posted  from  the  Sales  Book  ?     (Note  2,  p.  142.; 
What  is  the  use  of  the  Private  Ledger?     (Note  1,  p.  173.) 
What  accounts  are  kept  in  it?     (Pages  173  and  174.) 
What  is  the  rule  for  settling  interest  on  partners'  capital  ?     (Page  180.) 
What  is  the  rule  for  casting  1  and  10  per  cent,  commission  ?     (Rule,  p.  199.) 
How  are  the  intermediate  rates  found  ? 

What  is  the  rule  for  finding  interest  at  6  per  cent,  for  months?     (Rule,  p.  199.) 
What  is  the  shortest  rule  for  finding  it  for  60  days  ?     (Rule,  p.  200.) 
What  for  6  days  ? 

What  if  the  rate  be  over  or  under  6  per  cent.  ? 

What  is  the  mercantile  rule  for  settling  interest  on  running  accounts  ?  (Rule.  p.  201 .) 
What  rule  is  adopted  in  the  United  States  Courts  ?     (Rule,  p.  201.) 
What  is  the  rule  for  working  storage  equations  ?     (Rule,  p.  208.) 
What  is  the  rule  for  ascertaining  general  average?     (Rule,  p.  211.) 
Repeat  the  rule  for  dividing  profits  in  proportion  to  time  and  amount  of  capital,    t  Rule. 

p.  216.) 


225 


% 


\ 


l! 


Ir 


DUFFS  BOOK-KEEPING. 


PART  IV. 


k 


JOINT   STOCK   ACCOUNTS, 


ILLUSTRATED  IN  A  COMPLETE  SET  OF 


NATIONAL    BANK    BOOKS: 


AND  ONE  SET  OF 


RA^ILRO^D    BOOKS. 


TO  WHICH  IS  ADDED  A  FULL  SET  OF 


PRIVATE   BANKER'S   BOOKS. 


227 


\ 


II 


INTRODUCTORY  REMARKS. 


- 


■ 


In  the  following  set  of  National  Bank  Books,  we  present  all  tlie  practical  details  of  the 
first  six  months'  business,  from  the  preliminary  proceedings  of  the  originators  of  the  com- 
pany, down  to  the  declaration  of  the  first  dividend.  The  exercises  are  such  as  will  guide 
the  accountant  in  opening,  conducting,  and  closing  Joint  Stock  Books  of  any  kind. 

We  have  given  explanatory  notes  wherever  we  deemed  them  necessary  for  the  learner's 
information ;  but  for  the  rules  and  principles  of  the  science  he  must  refer  to  the  early  part 
of  the  work,  where  he  will  find  them  minutely  explained,  and  where  every  one  ought  to 
commence  the  study  of  it. 

In  the  transactions  recorded  in  Foreign  Bills  of  Exchange  we  have  to  acknowledge  our 
obligations  to  Messrs.  James  G.  King  &  Sons,  Bankers  of  New  York,  for  valuable  inform- 
ation promptly  and  courteously  afforded  us  in  matters  upon  which  we  could  obtain  no 
information  from  other  Banks,  as  but  few  Joint  Stock  Banks  in  New  York  do  any  direct 
business  with  foreign  countries. 

We  have  arranged  the  forms  of  the  following  set  for  posting  by  three  different  methods, 


VIZ. 


First. — By  Journalizing  the  contents  of  the  General  Cash  Book. 

Second.— By  constructing  the  General  Cash  Book  so  as  to  admit  of  direct  posting  from 
it  to  the  Ledger. 

Third. — We  have  arranged  the  Ledger  Titles  upon  the  Receiving  and  Paying  Teller's 
Cash  Books  in  such  form  as  to  admit  of  direct  daily  posting  from  these  books  to  the  Ledger 
without  the  intervention  of  either  a  Journal  or  General  Cash  Book,  introducing  the  greatest 
abridgment  that  the  process  will  admit  of. 


MINUTE  BOOK. 


CITY  NATIONAL  BANK. 


DECEMBER,  1866. 


1.  This  book  is  a  journal  of  the  preliminary  proceedings  of  the  Company.  We  have 
not  continued  it  after  the  general  business  of  the  Bank  commenced.  After  that  date  there 
is  but  little  to  record  but  the  date  and  names  of  the  members  present  at  each  meeting. 
The  book  is  usually  in  the  charge  of  the  Cashier. 


229 


For  obvious  reasons,  we  have  made  no  entries  of  the  present  premiums  upon  Gold. 

228 


I< 


K" 


M 


I 


tt 


DUFF'S  BOOK-KEEPING— PART  IV. 


MINUTES  OF  THE  BOARD  OF  DIRECTORS  OF 

THE  CITY  NATIONAL  BANK. 

FIRST  MEETING. 

The  provisional  Board  met  at  the  office  of  John  Ward,  Esq.,  December  10th, 
1866. 

PRESENT. 


John  Ward, 
James  Harper, 
Wm.  Major, 


Wm.  B.  Archer, 
Wm.  Hay, 
J.  C.  Baker. 


Mr.  Ward,  the  acting  President,  stated  that  Article  V.  of  the  Articles  of  Asso- 
ciation directs  us  to  call  a  meeting  of  the  Stockholders  for  the  purpose  of  electing 
three  additional  Directors,  to  complete  the  Board,  within  ten  days  of  the  date  when 
the  subscription  to  the  Capital  Stock  was  completed.  As  all  the  stock  has  been 
subscribed,  he  would  offer  the  following  resolution : —  * 

Resolved,  That  the  subscribers  to  the  Capital  Stock  of  the  City  National  Bank 
be  notified  that  an  election  of  three  Directors,  to  complete  this  Board,  will  be  held 
at  this  office  on  the  20th  day  of  December,  1866,  between  the  hours  of  12  M.  and 
4  P.M. 

Adjourned  to  meet  on  December  20th.  CHAS.  P.  DUFF, 

Acting  Cashier. 

MINUTES  OF  SECOND  MEETING. 
Office  of  John  Ward,  Esq.,  Thursday,  December  20th,  1866. 

PRESENT. 

John  Ward,  Wm.  B.  Archer, 

J.  C.  Baker,  James  Harper, 

Wm.  Hay,  Wm.  Major. 

Mr.  Ward,  acting  President,  laid  before  the  meeting  the  following  report  of 
the  inspectors  of  elections. 

The  undersigned,  inspectors  of  the  election  of  Directors  for  the  City  National 

Bank,  hereby  certify  that  the  following  statement  is  the  true  and  correct  number 

*  of  votes  given  for  the  three  Directors  elected  this  day  at  the  office  of  John  Ward, 

Esq.,  by  the  Stockholders  of  the  said  Bank,  to  complete  the  Board  of  Directors  for 

the  same  for  the  year  1867  : — 

Thomas  Mitchell,  4400  votes. 
Robert  Lenox,       4391 
Robert  Banks,       3998 

R.  C.  Root, 

Richard  Irvin,  J>  Inspectors  of  Election. 
Thos.  B.  Smith, 
Sworn  before  me  this  20th  day  of  December,  1866. 

Thos.  Archer,  Alderman. 
230 


C( 


(I 


NATIONAL  BANK  ACCOUNTS. 

Mr.  Harper  then  offered  the  following  resolution,  which  was  adopted  : 

Resolved,  That  Thomas  Mitchell,  Robert  Lenox,  and  Robert  Banks,  are  dulv 

elected  members  of  this  Board,  and  the  acting  Cashier  is  hereby  directed  to  notif\' 

the  said  parties  of  their  election. 

Mr.  Hay  then  proposed  the  following  resolution,  which  was  adopted : 

Resolved,  That  the  Board  adjourns  to  meet  at  this  office  on  Monday,  December 

24th,  1866,  at  2  p.m.,  for  the  purpose  of  electing  a  President  and  Cashier. 
Adjourned. 

CHAS.  P.  DUFF, 

Acting  Cashier. 

MINUTES  OF  THE  THIRD  MEETING. 

At  the  office  of  John  Ward,  Esq.,  Monday,  December  24th,  1866. 


Wm.  B.  Archer, 
Wm.  Hay, 
J.  C.  Baker, 

Robert  Lenox, 


present. 
John  Ward, 

James  Harper, 

Wm.  Major, 

Thomas  Mitchell, 

Robert  Banks. 

Mr.  Ward  stated  that  the  Board  had  met  for  the  purpose  of  electing  Bank 
Officers  for  the  year  1867.  For  the  office  of  President  of  the  Board  he  understood 
there  were  but  two  candidates,  Mr.  Archer  and  himself.  He  declined  saying  anv 
thing  of  his  own  qualifications;  but  of  his  friend  Mr.  Archer,  he  felt  it' his  duty 
to  say  that  his  long,  successful,  and  honorable  career  among  us  as  a  merchant 
eminently  fitted  him  for  this  responsible  office. 

Mr.  Hay  arose  and  stated  that  he  fully  agreed  with  Mr.  Ward  in  his  high 
opinion  of  his  friend  Mr.  Archer ;  but  he  thought  the  members  of  the  Board  would 
agree  with  him  in  the  opinion  that  both  the  candidates  were  eminently  fitted  for 
the  office. 

Mr.  Lenox  then  moved  that  the  Board  proceed  with  the  election.  And  for  this 
purpose  he  nominated,  as  Judges,  Robert  Banks  and  Thomas  Mitchell,  who  were 
accepted. 

The  Directors  voted,  as  usual,  by  ballot,  and  the  Judges  reported 

For  John  Ward,  five  votes.  For  Wm.  B.  Archer,  four  votes. 

Mr.  Banks  then  announced  to  the  Board  that  Mr.  John  Ward  was  dulv  elected 
President  of  the  City  National  Bank  for  the  year  1867. 

The  Board  next  proceeded  to  elect  the  Cashier. 

Mr.  Harper  nominated  Mr.  Chas.  P.  Duff. 

Mr.  Lenox  nominated  Mr.  Wm.  Draper. 

Upon  the  ballot  Mr.  Duff  received  six  votes ;  Mr.  Draper  received  three  votes. 

Whereupon  Mr.  Banks  announced  that  Mr.  Chas.  P.  Duff  was  duly  elected 
Cashier  of  the  City  National  Bank. 

The  President  suggested  the  appointment  of  a  committee  of  three  to  procure  a 
suitable  building  for  the  Bank. 

231 


Ill 


I 


DUFF'S  BOOK-KEEPING— PART  IV. 

Mr.  Ward  nominated  Mr.  Archer. 

Mr.  Harper  nominated  Mr.  Hay. 

Mr.  Lenox  nominated  Mr.  Banks. 

When  the  following  resolution  was  read  and  adopted : — 

Resolved,  That  Messrs.  W.B.Archer,  Wm.  Hay,  and  Robert  Banks,  are  hereby 
appointed  a  committee  to  procure  a  suitable  building  for  a  Bank,  and  report  upon 
the  same  at  the  next  meeting  of  the  Board. 

The  President  next  recommended  the  appointment  of  a  committee  to  draft  By- 
Laws  to  define  the  duties  and  regulate  the  powers  of  the  Officers  and  Directors. 

Mr.  Major  nominated  Mr.  J.  C.  Baker. 

Mr.  Mitchell  nominated  Mr.  Robert  Lenox. 

Mr.  Hay  nominated  Mr.  Jas.  Harper. 

Whereupon  the  following  resolution  was  read  and  adopted : — 

Resolved,  That  Messrs.  J.  C.  Baker,  Robert  Lenox,  and  James  Harper,  are 
hereby  appointed  a  committee  to  draft  By-Laws  for  the  government  of  the  Officers 
and  Directors  of  this  Association. 

The  meeting  adjourned  to  meet  on  Monday,  December  31st,  1866. 

CHAS.  P.  DUFF, 
*  Cashier. 

MINUTES  OF  THE  FOURTH  MEETING. 
At  the  office  of  John  Ward,  Esq.,  Monday,  December  31st,  1866. 

PRESENT. 

The  President, 

Wm.  B.  Archer,  J.  C.  Baker, 

James  Harper,  Thos.  Mitchell, 

Wm.  Hay,  Robert  Lenox, 

Wm.  Major,  Robert  Banks. 

After  reading  the  minutes  of  the  last  meeting,  Mr.  Archer,  chairman  of  the 
Committee  on  Bank  Building,  reported,  That,  not  being  able  to  find  a  building  that 
they  can  recommend  for  purchasing,  the  committee  advise  the  Board  to  lease  the 
premises  No.  41  Wall  Street,  recently  occupied  as  a  Banking  House  by  Messrs. 
Greenwood,  Cox  &  Co.  Immediate  possession  can  be  obtained  at  a  rent  of  $4000 
per  annum,  and  the  committee  are  of  the  opinion  that  $1400  will  cover  all 
expenses  necessary  to  prepare  the  building  for  our  business. 

Mr.  Mitchell  then  offered  the  following  resolution,  which  was  adopted : — 

Resolved,  That  the  President  is  hereby  authorized  to  lease  the  premises  No. 
41  Wall  Street,  for  a  term  of  five  years  from  the  first  day  of  January,  1867,  for 
the  use  of  this  Association,  and  to  contract  for  such  repairs  and  improvements  upon 
the  same  as  he  may  deem  necessary  to  fit  them  for  our  Bank,  and  that  the  expenses 
of  all  such  repairs  and  improvements,  together  with  the  rents  of  the  said  premises, 
during  the  said  lease,  be  paid  out  of  the  funds  of  the  Bank. 

Mr.  Lenox  proposed  the  following,  which  was  also  adopted  :— 

232 


NATIONAL  BANK  ACCOUNTS. 

Resolved,  That  the  Cashier  is  authorized  to  purchase  the  necessary  furniture, 
books,  stationery,  and  such  other  articles  as  he  and  the  President  shall  deem 
necessary  to  prepare  the  Bank  for  business. 

The  President  then  stated  that  about  $300,000  of  the  Capital  Stock  had  been 
paid  in.  Would  it  not  be  proper  to  invest  a  part  of  this  amount  in  United  States 
Bonds? 

Whereupon  Mr.  Harper  moved  the  following  resolution : — 

Resolved,  That  the  President  is  hereby  authorized  to  invest  in  United  States 
Bonds  such  amount  of  the  funds  of  this  Association,  now  in  hand,  as  he  may  deem 
expedient.     Adopted. 

Mr.  Banks  then  proposed  the  following  resolution,  which  was  also  adopted  : — 

Resolved,  That  the  third  instalment  of  50  per  cent,  of  the  Capital  Stock  of 
this  Association  shall  be  due  and  payable  on  the  10th  day  of  January  next  ensuing, 
and  that  the  Cashier  notify  the  subscribers  of  the  same. 

Mr.  J.  C.  Baker,  from  the  Committee  on  By-Laws,  presented  their  report,  w  hich 
was  read,  adopted,  and  ordered  to  be  engrossed  in  a  suitable  book  for  reference  by 
the  Directors  and  Officers. 

Mr.  Banks  stated  that  the  repairs  of  the  Banking  rooms  could  no  doubt  be  so 
far  completed  as  to  admit  of  holding  their  next  meeting  in  them ;  Therefore, 

Resolved,  That  the  Board  shall  meet  at  their  Bank,  No.  41  Wall  Street,  on  the 

5th  day  of  January  next,  at  12  M.,  for  the  purpose  of  appointing  clerks,  <S:c.    Passed. 

Adjourned. 

CHAS.  P.  DUFF, 

Cashier. 

MINUTES  OF  THE  FIFTH  MEETING. 

At  the  City  National  Bank,  Saturday,  January  5th,  1867. 

PRESENT. 

The  President, 
Wm.  B.  Archer,  J.  C.  Baker, 

James  Harper,  Thomas  Mitchell, 

Wm.  Hay,  Robert  Lenox, 

Wm.  Major,  Robert  Banks. 

The  minutes  of  last  meeting  were  read. 

The  President  stated  that  he  had  leased  the  premises  in  which  we  are  now  met, 
for  the  use  of  the  Bank,  for  five  years  from  the  1st  instant,  for  the  annual  rent  of 
$4000,  and  that  he  had  contracted  with  B.  Carpenter  &  Co.  for  the  necessary  repairs 
and  alterations  for  $1400.  He  also  stated  that  he  had  invested  $200,000  of  the 
Bank  funds  in  United  States  Five-Twenty  Bonds,  bearing  interest  at  6  per  cent., 
which  he  had  deposited  with  the  Comptroller  of  the  Currency  of  the  United  States, 
at  Washington,  as  security  for  the  issues  of  the  Bank,  as  required  by  the  "National 
Currency  Act,''  which  now  authorizes  us  to  commence  business,  which  he  would 
recommend  the  Board  to  announce  at  an  early  day ;  Therefore, 

233 


iMi 


i 


DUFF'S  BOOK-KEEPING— PART  IT. 

Resolved,  That  the  Cashier  give  public  notice  that  the  City  National  Bank 
will  be  open  for  business  on  the  10th  inst. 

Mr.  Archer  moved  that  the  Board  now  consider  the  appointment  of  General 
Book-keeper,  Teller,  &c.  There  were  a  number  of  applicants  for  each  office,  but 
he  hoped  the  Board  would  deem  it  their  duty  to  allow  no  consideration  to  influence 
these  appointments  but  that  of  capability. 

After  considering  the  credentials  of  the  different  applicants,  the  following 
appointments  were  agreed  upon  : — 

For  General  Book-keeper,  W.  J.  Parker. 

For  First  Teller,  (Paying,)  J.  J.  Jones. 

For  Second  Teller,  (Receiving,)  Geo.  Dexter. 

For  Messenger,  Simon  Parry. 

The  Cashier  was  directed  to  apprize  the  parties  of  their  appointment,  and  to 
request  them  to  execute  the  necessary  bonds,  with  sureties,  to  lodge  with  the 
President  on  or  before  the  10th  instant. 

These  appointments  were  deemed  sufficient  for  the  business  of  the  Bank  at  its 
commencement.     Others  are  left  until  increased  business  requires  them. 

Adjourned  to  meet  10th  instant. 

CHAS.  P.  DUFF, 

Cashier. 

MINUTES  OF  THE  SIXTH  MEETING. 

At  the  City  National  Bank,  Thursday,  January  10th,  1867. 

PRESENT. 

* 

The  President, 
Wm.  B.  Archer,  J.  C.  Baker, 

James  Harper,  Thomas  Mitchell, 

Wm.  Hay,  Robert  Lenox, 

Wm.  Major,  Robert  Banks. 

The  minutes  of  the  last  meeting  were  read. 

The  President  stated  that  the  officers  appointed  at  the  last  meeting  had  executed 
and  lodged  with  him  the  necessary  bonds,  with  sureties,  and  had  entered  upon 
their  duties ;  and  the  Comptroller  of  the  Currency  having  authorized  us  to  com- 
mence business,  the  Bank  was  accordingly  opened  this  morning. 

The  Offering  Book  was  then  laid  before  the  Board,  and  such  notes  as  were 
approved  were  passed. 

Adjourned.  CHAS.  P.  DUFF, 

Cashier, 
234 


'  1 


NATIONAL  BANK  ACCOUNTS. 

BY-LAWS  OF  THE  CITY  NATIONAL  BANK, 

ADOPTED  DECEMBER  31,  1866. 

Article  I. — The  Bank  shall  be  open  for  general  business  every  weekday  fnim 
10  AM  till  3  P.M.,  except  holidays  and  such  days  as  the  Government  appoint 
as  public  fast-days.  And  the  Board  of  Directors  shall  meet  for  the  transac- 
tion of  their  regular  business  every  weekday  from  12  M.  to  1  p.m. 

Article  II. — The  President,  when  present,  shall  preside  at  all  the  meetings  of 
the  Board.  In  case  of  his  absence,  a  majority  of  the  members  present  shall 
elect  a  President  pro  tem.  And  at  all  meetings  of  the  Board  the  President 
or  Cashier,  with  four  Directors,  shall  constitute  a  quorum  for  the  transaction 
of  business. 

Article  III. — There  shall  be  a  standing  committee  of  Two,  called  the  Examining 
Committee,  who  shall  inspect  the  assets  of  the  Bank,  compare  them  with  the 
books,  and  make  quarterly  reports  of  the  same  to  the  Board.  These  commit- 
tees are  elected  as  follows.  The  President  nominates  a  member  of  the  Board. 
If  this  member  is  approved,  he  nominates  a  second,  who,  if  approved,  in  turn 
nominates  a  third :  the  yeas  and  nays  being  taken  on  each  nomination. 

Article  TV. — A  book  of  minutes  shall  be  kept  of  the  meetings  of  the  Board, 
recording 

The  names  of  each  member  present, 

The  resolutions  adopted,  ^ 

And  other  general  business  of  the  Board. 

Article  Y. — The  President,  on  entering  upon  his  duties,  must  subscribe  to  the 
following  oath : — "  I,  the  undersigned,  do  solemnly  swear  (or  affirm)  that  I 
will  truly  and  faithfully  administer  and  discharge  all  the  duties,  trusts,  and 
obligations  devolving  upon  me  as  President  elect  of  the  City  National  Bank 
of  New  York,  and  deliver  the  same  to  the  custody  of  my  successor." 

Article  YI. — The  Cashier  and  Clerks  employed  by  the  Board  must  give  such 
bonds  and  sureties,  for  the  faithful  performance  of  their  several  duties,  as  shall 
be  satisfactory  to  the  Board;  these  bonds  to  remain  in  the  custody  of  the 
President. 

Article  YII. — All  business  transactions  of  the  Board,  the  votes  and  opinions 
of  members,  the  business  of  the  customers  of  the  Bank,  with  the  state  of  their 
accounts,  shall  be  held  in  the  strictest  confidence,  and  never  disclosed  out  of 
the  Bank,  unless  required  in  a  court  of  justice. 

Article  YIII. — The  Cashier  shall  be  required  to  lay  before  the  Board,  at  their 
meetings,  all  such  statements  of  the  affairs  of  the  Bank  as  they  require,  in 
reference  to 
Its  Liabilities  and  Assets. 

235 


2 


! 


n 


I 


DUFFS  BOOK-KEEPING— PART  IV. 

The  Liabilities  as  principals  and  endorsers  of  customers. 

Discounted  Notes  on  hand. 

Discounted  Notes  under  protest. 

Overdrafts  of  Depositors. 

Notes  of  the  Bank  in  circulation. 

Deposits  on  hand. 

Specie  on  hand. 

To  register  all  notes  put  in  circulation. 

To  check  the  Tellers'  Books  and  balances. 

To  report  promptly  all  delinquencies  connected  with  the  Bank. 

Akticle  IX.— The  Cashier  shall  pay  all  the  expenses  of  the  Bank,  and  report 
the  same  to  the  Board  monthly. 

Article  X. — In  granting  loans  to  individuals  on  collateral  security,  the  vote 
of  the  members  present  shall  decide  the  acceptance  or  rejection  of  the  appli- 
cation. If  there  be  a  tie,  the  President  may  give  the  casting  vote.  When  he 
deems  the  security  unexceptionable,  the  President  may  discount  business- 
paper  between  the  meetings  of  the  Board,  to  an  amount  not  exceeding  $10,000 ; 
and  he  may  purchase  Foreign  Bills  of  Exchange  of  undoubted  security,  to  an 
amount  not  exceeding  $50,000 ;  but  he  must  report  all  such  transactions  to 
the  Directors  at  their  next  meeting.  No  note  or  draft  will  be  accepted  for 
discount  for  less  than  $100,  and  none  for  collection  for  less  than  $50. 

Article  XI. — The  Board  may  at  any  time  reconsider  any  question  or  resolution 
before  it,  unless  the  motion  to  reconsider  be  negatived  by  the  President. 

Article  XII. — When  any  Director  shall  cease  to  own,  in  his  own  right.  Ten 
Shares  of  the  Capital  Stock  of  the  Bank,  he  shall  vacate  his  seat  at  the  Board, 
and  a  majority  of  the  remaining  Directors  shall  elect  his  successor. 

Article  XIII.— No  Teller,  Clerk,  or  Book-keeper  shall  be  allowed  to  keep  an 
account  of  deposit  with  the  Bank. 

Article  XIV.— The  following  salaries  shall  be  paid  the  officers  and  employees 
of  the  Bank  for  the  year  1867,  payable  quarterly,  viz.: — 

To  the  President $2000  per  annum. 

To  the  Cashier 1800 

To  the  General  Book-keeper 1 500         " 

To  the  Receiving  Teller 1000  " 

To  the  Paying  Teller 1000  " 

To  the  Messenger 600         " 

$7,900 

Article  XV. — The  foregoing  By-Laws  may  be  amended  by  a  vote  of  two-thirds 
of  the  entire  Board,  upon  one  week's  previous  notice  of  the  motion. 

Adopted,  by  resolution  of  the  Board  of  Directors,  December  31,  1866. 

236 


ARTICLES  OF  ASSOCIATIOK 


CITY  J^ATIOJ^AL  BAJSTK. 


1866. 


287 


|l  ' 


\i 


DUFFS  BOOK-KEEPING— PART  IV. 


NATIONAL  BANK  ACCOUNTS. 


f 


t 


If 


fii 


ARTICLES  OF  ASSOCIATION  OF  THE 

CITY  NATIONAL  BANK  OF  NEW  YORK. 

Know  all  men  by  these  presents,  that  we  who  have  hereunto  subscribed  our 
names  and  set  our  seals  do  hereby  associate  ourselves  for  the  purpose  of  conducting 
the  business  of  Banking,  under  the  Act  of  Congress  of  the  United  States  to  provide 
for  a  National  Currency,  secured  by  pledge  of  United  States  Stocks,  approved 
June  3d,  1864.  And  we  hereby  bind  ourselves,  our  heirs,  administrators,  and 
assigns,  to  comply  with  all  the  regulations  and  obligations  of  the  following  articles, 
hereby  solemnly  ratifying  and  confirming  the  same  as  our  Articles  of  Association. 

Aeticle  T. — Our  Association  shall  be  called  the  City  National  Bank,  and 
shall  be  situated  in  the  City  of  New  York,  with  a  Capital  Stock  of  Six 
Hundred  Thousand  Dollars,  divided  into  Six  Thousand  Shares  of  One  Hun- 
dred Dollars  each,  agreeably  to  Section  12  of  said  Act  of  Congress. 

Article  II. — The  first  instalment  of  Thirty  Dollars  on  each  share  of  the 
above-named  Capital  Stock  shall  be  due  and  payable  within  five  days  after 
signing  these  articles,  and  the  second  instalment  of  Twenty  Dollars  shall 
be  due  and  payable  within  twenty  days  after  subscribing  to  these  articles. 
The  dates  of  payment  for  the  balance  of  the  Capital  Stock  to  be  named  by  the 
Board  of  Directors,  to  be  chosen  as  hereinafter  prescribed,  for  the  direction 
and  management  of  our  Bank.  All  instalments  shall  be  payable  in  lawful 
money  of  the  United  States,  or  such  funds  as  are  readily  convertible  into  the 
same. 

Article  III. — The  powers  and  privileges  conferred  upon  our  Association  by  the 
aforesaid  Act  of  Congress,  authorize  us  to  delegate  the  management  of  our 
business  to  Nine  Directors,  of  whom  a  majority  shall  constitute  a  quorum,  who 
are  further  authorized  to  appoint  a  President,  Cashier,  and  Clerks,  and  to 
determine  their  salaries  and  their  duties ;  and  also  to  enact  and  adopt  such 
By-Laws,  not  at  variance  with  the  aforesaid  Act  of  Congress,  or  with  any  of 
these  Articles,  as  they  shall  deem  necessary  for  the  regulation  of  the  business 
of  the  Bank. 

Article  IV. — The  Board  of  Directors  shall  be  composed  exclusively  of  citizens 
of  the  United  States ;  and,  agreeably  to  Section  9  of  the  aforesaid  Act,  no 
person  shall  be  eligible  to  a  seat  in  the  Board  who  does  not  hold  in  his  own 
name  at  least  Ten  Shares  of  the  Capital  Stock ;  and  we  hereby  nominate  and 
appoint  the  following  parties  as  a  Provisional  Board  of  Directors,  leaving  the 
remaining  three  seats  to  be  filled  by  the  election  of  the  Stockholders : — 

John  Ward,  Wm.  B.  Archer, 

James  Harper,  Wm.  Hay, 

Wm.  Major,  J.  C.  Baker. 

And  we  further  appoint  the  said  John  Ward  President  pro  tem.,  and  Chas. 
P.  Duff  Cashier  pro  tem. 

2.38 


Article  Y. — An  election  to  complete  the  Board  of  Directors  shall  be  called  by 
our  said  President  pro  tem.  within  ten  days  after  the  subscription  to  our 
Capital  Stock  is  completed ;  and  there  shall  be  an  annual  election  of  Directors 
for  our  Association  held  in  the  City  of  New  York  on  the  first  Monday  in 
January ;  ten  days'  previous  notice  of  said  election  to  be  published  in  two 
of  the  city  daily  papers.  Each  Stockholder  shall  be  entitled  to  one  vote  on 
each  share  of  stock  held  by  him. 

Article  VI. — At  their  first  meeting,  or  as  soon  after  as  practicable,  the  Directors 
shall  elect  by  ballot  one  of  their  number  as  President  of  this  Association,  who 
shall  be,  and  who  is  hereby,  acknowledged  as  the  official  head  of  this  Asso- 
ciation ;  who,  when  present,  shall  preside  at  all  meetings  of  the  Board,  and 
who  is  hereby  authorized  and  empowered,  with  the  consent  of  the  said  Board, 
to  purchase  and  convey  all  such  Real  Estate  as  it  may  be  lawful  for  this 
Company  to  hold ;  to  buy,  sell,  and  transfer  stocks,  bonds,  and  mortgages,  or 
other  property  or  evidences  of  debt,  held  as  security  or  belonging  to  this 
Company,  and  to  receive  all  rents,  dividends,  and  incomes  arising  from  the 
same ;  to  invest  the  funds  of  the  Company  in  United  States  Bonds,  and  to 
deposit  the  same  with  the  Comptroller  of  the  United  States  Currency,  in  the 
City  of  Washington,  as  security  for  the  notes  put  in  circulation  by  this  Bank, 
and  to  sign  all  its  notes  so  put  in  circulation ;  to  sue  and  be  sued  for  values 
claimed  by  or  of  this  Company ;  to  grant  and  sign  Powers  of  Attornev  for 
special  purposes ;  and  to  perform  all  other  acts  consistent  with  these  Articles 
of  Association,  and  the  aforesaid  Act  of  Congress,  that  may  be  beneficial  to 
this  Association.  And  in  case  of  the  unavoidable  absence  of  the  President,  the 
Board  of  Directors  are  hereby  empowered  to  elect  a  President  pro  tem.,  who 
is  authorized  to  perform  all  the  aforesaid  duties  until  the  President  can  resume 
his  office,  or  until  a  new  President  is  elected. 

Article  YII. — The  Directors  shall  appoint  the  Cashier,  who  shall  keep  the 
minutes  of  the  meetings  of  the  Board,  countersign  and  register  all  notes  issued, 
examine  the  books  of  the  Tellers'  accounts,  and  conduct  the  business  of 
the  Bank  agreeably  to  the  instructions  of  the  Board,  furnishing  them  at  all 
times  with  such  information  as  they  may  require. 

Article  YIII.— The  Board  of  Directors  shall  require  the  Cashier,  Tellers,  and 
.  all  other  employees,  before  entering  on  their  duties,  to  give  bonds,  with  sureties 
satisfactory  to  the  President,  for  the  faithful  discharge  of  all  trusts  and  duties 
required  of  them. 

Article  IX. — The  Board  of  Directors  are  authorized  to  appoint,  from  time  to 
time,  committees  composed  of  their  own  body,  and  to  empower  them  to 
transact  special  matters  of  business,  and  to  revoke  such  appointments  at 
pleasure.  They  are  also  authorized  to  appoint  three  of  the  Stockholders  to 
serve  as  Inspectors  and  Judges  to  conduct  the  annual  elections  of  Directors. 
But  no  Director  can  be  eligible  to  the  office  of  judge  of  elections.     And  we 

239 


DUFF'S  BOOK-KEEPING— PART  IV. 


NATIONAL  BANK  ACCOUNTS. 


;.  » 


hereby  nominate  and  appoint  R.  C.  Root,  Richard  Irvin,  and  Thos.  B. 
Smith  inspectors  of  our  first  election  of  Directors. 

Article  X.— The  Cashier  pro  tern,  shall  grant  receipts  to  the  subscribers  of  the 
Capital  Stock  for  each  instalment  as  paid  in,  such  receipts  to  be  countersigned 
by  the  President  pro  tern.  No  Certificate  of  Stock  shall  be  granted  to  any 
subscriber  until  the  whole  amount  of  the  subscription  is  paid  in. 

Article  XI.— All  Certificates  of  Stock  shall  be  signed  by  the  Cashier  and  the 
President,  and  all  transfers  of  stock  shall  invest  the  new  holders  with  all  the 
rights  and  privileges,  interests  and  obligations,  conferred  by  these  Articles;  and 
each  subscriber  to  these  Articles,  in  consideration  of  the  number  of  shares  set 
aside  for  him  or  her,  hereby  holds  himself  or  herself  bound  by  these  Articles 
for  the  full  amount  of  such  shares  of  Capital  Stock  as  are  written  opposite  his 
or  her  name,  hereby  binding  themselves  to  make  punctual  payment  of  all 
instalments  due  on  the  same  by  these  Articles,  or  by  subsequent  orders  of  the 
Board  of  Directors,  and  to  pay  six  per  cent,  interest  upon  any  instalments 
that  may  remain  overdue ;  and  when  any  instalment  is  withheld  for  sixty 
days,  the  Directors  are  hereby  empowered  and  authorized  to  transfer,  forfeit, 
and  sell  for  the  benefit  of  this  Association  such  share  or  shares,  with  all  pay- 
jnents  made  on  the  same,  agreeably  to  Section  15  of  the  aforesaid  Act  of 
Congress,  and  to  erase  the  name  or  names  representing  the  same  from  the 
books  of  the  Company. 

Article  XII.— The  Directors  are  authorized  to  pay  all  expenses  of  this  Associa- 
tion out  of  the  funds  of  the  same.  And  for  the  general  information  of  the 
Stockholders,  they  shall  make  out  and  submit  to  their  inspection  semi-annual 
statements  of  the  Assets,  Liabilities,  Expenditures,  and  Profits,  verified  by  the 
Cashier  and  President ;  and  the  Directors  shall  declare  and  pay  the  Stock- 
holders such  dividends  as  they  may  deem  proper  out  of  the  net  profits  of  the 
Company. 

Article  XIII. — This  Association  shall  commence  business  in  the  month  of 
January  in  the  year  of  our  Lord  One  Thousand  Eight  Hundred  and  Sixty- 
Seven,  and  shall  have  succession  by  the  name  designated  in  these  Articles  for 
twenty  years,  agreeably  to  Section  8  of  the  aforesaid  Act  of  Congress,  unless 
sooner  dissolved  by  the  act  of  the  Shareholders. 

Article  XIV.— The  Directors  of  this  Association  may  at  any  time  propose 
amendments  to  these  Articles,  upon  giving  thirty  days'  notice,  with  a  copy  of 
the  proposed  amendments,  to  each  Stockholder ;  and  upon  the  representatives 
of  two-thirds  of  the  Capital  Stock  signing  their  written  consent  to  the  same, 
then  the  said  amendments  shall  become  as  binding  on  the  Company  as  the 

Articles  above  written  and  now  adopted. 

240 


We,  the  undersigned,  subscribe  to  the  foregoing  Articles  of  Association  of  the  City 
National  Bank  op  New  York,  and  for  the  Capital  Stock  of  the  same  set  opposite  our 
names  and  seals  at  the  date  of  subscription. 


Date. 


1866. 
Dec. 


10 


Number  of  Shares. 


I  subscribe  for  Five  Hundred  Shares, 
I  subscribe  for  Five  Hundred  Shares, 
I  subscribe  for  One  Hundred  Shares, 
I  subscribe  for  One  Hundred  Shares, 
I  subscribe  for  One  Hundred  Shares, 
I  subscribe  for  Two  Hundred  Shares, 
We  subscribe  for  Three  Hundred  Shares 
I  subscribe  for  Fifty  Shares,    .    .    . 
I  subscribe  for  One  Hundred  Shares, 
I  subscribe  for  Two  Thousand  Shares, 
I  subscribe  for  One  Hundred  Shres, 
I  subscribe  for  One  Hundred  Shares, 
E  subscribe  for  Twenty  Shares,    .    . 
I  subscribe  for  Thirty  Shares,   .    .    . 
I  subscribe  for  One  Hundred  Shares, 
[  subscribe  for  Six  Hundred  Shares, 
We  subscribe  for  One  Hundred  Shares, 
[  subscribe  for  Five  Hundred  Shares, 
[  subscribe  for  One  Hundred  Shares, 
[  subscribe  for  One  Hundred  Shares, 
I  subscribe  for  Three  Hundred  Shares, 


Shares. 

500 
500 
100 
100 
100 
200 
300 
50 
100 
2000 
100 
ICO 
20 
30 
100 
600 
100 
500 
100 
100 
300 


John  Ward,    .    .    . 
Jas.  Harper,      .    . 
jTames  AV.  Cox,    .    . 

tC.  Baker,  .    .    . 
m.  H.  Duff,  .     .     . 
Wm.  Hay,    .    .     . 
;  Barclay,  Hope  &  Co., 
'.  larriet  Lenox, 
'.  iobert  Lenox,     .     . 
'  ^.  B.  Archer,    .    . 
;  I.  C.  Root, .... 

:  \  Dufi;  .... 

'  ^m.  Draper,     .    . 
,  ames  R.  Compton, 
jiamuel  Warren,    . 
'.  lobert  Banks,      .     . 
'.  lichard  Irvin  &  Co., 
'  ?hos.  Mitchell,    .     . 
'  ?hos.  B.  Smith, .     . 
t  ames  Harper,    .    . 
'  Nm.  Major,  .    .    . 


6000 


Seal, '.  ^evr  York. 
Seal, '.  !f ew  York. 
Seal, :  "Jew  York. 
Seal,  Jersey  City. 
Seal,  Pittsburgh,  Pa- 
Seal,  Brooklyn. 
Seal,  '.  ^ew  York. 
Seal, '.  ^ew  York. 
Seal,  ;  sew  York 
Seal, :  few  York. 
Seal,  ;  sew  York. 
Seal,  '.  'ittsburgh,  Pa. 
Seal, :  Juffalo,  N.  Y. 
Seal,  ;  ^ockport,  N.Y. 
Seal,  '.  Brooklyn. 
Seal, .  ersey  City. 
Seal, !  few  York. 
Seal,  ]  few  York. 
Seal,  ]  few  York. 
Seal,  ]  few  York. 
Seal,  Brooklyn. 


In  witness  to  the  foregoing  subscriptions  and  signatures,  we,  the  undersigned,  hcreanto 
set  our  hands  and  seals,  in  the  City  of  New  York,  this  tenth  day  of  December,  AD.  1866. 

John  Ward,  President  pro  tem.  Seal. 

Chas.  p.  Duff,  Cashier  pro  tem.  Seal. 

241 


i  i 


[Up 


ii 


INSTALMENT  LIST. 


.      INSTALMENT  No.  L 

Subscribers  to  the  Capital  Stock  of  the  City  National  Bank.     Thirty  Dollars  per 
share  due  December  1st  to  15thj  1866.     Agreeably  to  Articles  of  Association,  Article  II. 


INSTALMENT  LIST. 


INSTALMENT  No.  2.     * 

Subscribers  to  the  Capital  Stock  of  the  City  National  Bank.     Twenty  Dollars  per 
share  due  December  21st  to  31st,  1866.     Agreeably  to  Articles  of  Association,  Article  II. 


Wheh  Due.     Whex  Rec*©, 


Subscribers'  Names. 


Dec. 


6 

6 

6 

6 

6 

6 

6 

10 

10 

10 

10 

15 

15 

15 

15 

15 

15 

15 

15 

15 

15 


Dec. 


Ill 
5 

5 

5 

5 

6 

9 
10 
10 
10 
10 
15 
15 
15 
15 
15 
15 
15 
18 
18 
18 


Barclay,  Hope  &  Co 
John  Ward,  . 
James  Harper,  . 
Jas.  W.  Cox,  . 
J.  C.  Baker,  .  . 
Wm.  H.  Duff,  . 
Wra.  Hay, 
Harriet  Lenox, 
Robert  Lenox,  . 
Wm.  B.  Archer, 
R.  C.  Root,  .  . 
P.  Duff, .  .  . 
Wm.  Draper, 
Jas.  R.  Compton, 
Samuel  Warren, 
Robert  Banks, 
Richard  Irvin  &  Co 
Thos.  Mitchell, 
Thos.  B.  Smith.  . 
James  Harper, 
Wm.  Major,  .     . 

Interest, 


Dec.  1  Ent'd  Cash  Book  1 


Shakxs. 


300 
500 
500 
100 
100 
100 
200 
50 
100 
20Q0 
100 
100 
20 
30 
100 
600 
100 
500 
100 
100 
300 


5 

II 

II 

II 

6 

H 

H 

If 

9 

II 

II 

II 

10 

U 

II 

II 

15 

II 

II 

II 

18 

n 

II 

II 

9 

M 

II 

Instalment. 


9000; 

15000 

15000  ; 
3000  ! 
3000  j 
3000  I 
6000 
1500 
3000 

60000 

3000 

3000 

600 

900 

3000 

18000 
3000 

15000 
3000 
3000 
9000 


Int. 


3 


150 
150 
4  50 


Amount  Rec'd. 


9000 
15000 
15000 

3000 

3000 

3000 

6003 

1500 

3000 
60000 

3000 

3000 
600 
900 

3000 
18000 

3000 
15000 

3001  150 

3001  50 


When  Due.     When  Reo'd 


1866. 

Dec. 


9004 


6000  i  180000  !   10  50 


10 


u 


50 


180010  50 


180010  50 


9000 
36000 

3000 

6000 

67500 

43500 

15000 

10  50 


212 


180010  50 


21 
21 
21 
21 
21 
21 
21 
25 
25 
25 
25 
30 
30 
30 
30 
30 
30 
30 
30 
30 
30 


1866. 

Dec.  19 
19 
19 

,21 
21 
121 

27 
25 
25 
!28 
25 
28 
28 
28 
30 
31 
30 
30 
30 
30 
30 


Subscribers'  Names. 


Shares. 


John  Ward,  . 
James  Harper, 
Jas.  W.  Cox, . 
J.  C.  Baker, 
Wm.  H.  Duff, 
Wm.  Hay,  .     . 
Barclay,  Hope  &  Co 
Harriet  Lenox, 
Robert  Lenox,    . 
Wm.  B.  Archer, 
R.  C.  Root,    .     . 
P.  Duff,  .     .     . 
Wm.  Draper, 
Jas.  R.  Compton, 
Samuel  Warren, 
Robert  Banks, 
Richard  Irvin  &  Co., 
Thomas  Mitchell, 
Thos.  B.  Smith,  . 
James  Harper, 
Wm.  Major,   .     . 


500 

500 

100 

100 

100 

200 

300 

50 

100 

2000 

100 

100 

20 

30 

100 

600 

100 

500 

100 

100 

1    800 

6000 


Interest, 


Dec.  19  Ent'd  Cash  Book  1 

1 

i. 

1 
1 

1, 
1 


21 

// 

II 

II 

25 

// 

n 

n 

27 

// 

II 

II 

28 

II 

II 

II 

30 

II 

II 

31 

II 

II 

If 

II 

Instalment. 


10000 

10000  , 
2000  ! 
2000  i 
2000 
4000 
6000 
1000  ! 
2000 

40000  1 

2000 

2000 

400 

600 

2000 

12000 
2000 

10000  • 
2000 
2000  I 
6000 

120000 

28^ 

120028 


Int. 


20 


Amouitt  Rxc'd. 

10000 
10000 

2000 

2000 

2000 

4000 

6006 

1000 

2000 
40020 

2000 

2000 
400 
600 

2000 
12002 

2000 
10000 

2000 

2000 

6000 


28 


120028 


22000 

8000 

5000 

6000 

43000 

24000 

12000 

28 

i 
1 

120028 

243 


r 


)  ; 


INSTALMENT  LIST. 


INSTALMENT  No.  3. 

Subsciibers  to  the  Capital  Stock  of  the  City  National  Bank  Fifty  Dollars  per  share 
due  January  10th,  1867.  Agreeably  to  resolution  of  the  Board  of  Directors,  passed 
December  31st,  1866. 


WmH.  Do. 


1887. 

Jan.  110 
10 
LO 
10 
LO 
10 
LO 
LO 
[0 
LO 
LO 

to 

10 
LO 
LO 
LO 
LO 
LO 
LO 
10 


1S67. 

-Tan. 


9 

9 

9 

9 

h9 

,  9 

19 

19 

9 

10 

10 

10 

10 

10 

10 

10 

10 

10 

10 

10 


John  Ward,  . 
James  Harper, 
Jas.  W.  Cox, 
J.  C.  Baker,     . 
W.  H.  Duff,  .     . 
Wm.  Hay,  .     . 
Barclay,  Hope  &  Co 
|Harriet  Lenox, 
iRobert  Lenox, 
jWm.  B.  Archer, 
iR.  C.  Root,    . 
[P.  Duff, .     .     . 
IWm.  Draper,       .     . 
jjas.  R.  Compton,. 
Samuel  Warren, 
Robert  Banks, 
Richard  Irvin  &  Co 
Thomas  Mitchell, 
Thomas  B.  Smith,  . 
Wm.  Major,     .     . 


500 

'  600 

100 

100 

1  100 

200 

300 

50 

100 

2000 

100 

100 

20 

30 

100 

600 

100 

500 

100 

300 


25000 

30000 

5000 

5000 

5000 

10000 

15000 

2500 

5000 

100000 

5000 

5000 

1000 

1500 

5000 

i  30000 

5000 

25000 

5000 

15000 


16000   ;  1300000 


Jan.  9  Ent'd  Cash  Book  1 
10      It        n        'I      \ 


102500 
197500 


300000 


25000 

30000 
5000 
5000 
5000 

10000 

15000 
2500 
5000 
100000 
5000 
5000 
1000 
1500 
5000 

30000 
5000 

25000 
5000 

15000 

300000 


i 


§• 


I 

I- 

ss 
?: 

go 

D  P 
o  P 

°  E 


s. 


C 

m 
M 


o 

i 


^ 


i'^r 


I 


-^^  -4^  B"  5  .«^  f 


244 


245 


t 
I    I' 


1 


m  ill 


■ 


a 


4- 


,/4-^ 


— ^-w 


(»^ 


I 


I 


I 


^    o 

ft?  '-  « 

9 


-I 


1 


n 


CO 

CO 


^ 


Q    ! 


^  ^ 


§ 


CJ 


O   lUit 


I!- 


y\ 


246 


/\ 


^ 

>» 

'to 


I 


^ 


T 
» 

1, 


s< 


vi/ 


01 
OD 


a 
PQ 


•5 

0) 

•a 
o 

» 


o 

X 

o 

•a 


o 

9 
« 

is 


« 

0 

o 


«5      0 


I 


o 

DC 


I 

I 


o 


'-^ 


« 

V 

^ 

.§ 


CITY  NATIONAL  BANK, 

GENERAL    CASH-BOOK, 


1867. 


1.  All  receipts  and  payments  preceding  the  commencement  of  general  business  are  first 
recorded  in  this  book.  Afterwards  it  is  made  up  from  the  Receiving  and  Paying  Tellers' 
Cash  Books.  In  a  large  business  it  ought  to  be  journalized  and  balanced  daily,  and  its 
balance  must  agree  with  the  balance  of  money  in  the  vault,  and  in  the  Tellers'  hands,  con- 
sisting of 

Notes  of  other  Banks, 

Checks  on  other  Banks, 

Treasury  Notes, 

Specie,  and 

Our  own  Notes  in  hand,  used  as  money. 

2.  In  our  Private  Banker's  accounts,  we  shall  exhibit  this  book  posted  direct  to  the 
General  Ledger,  which  may  be  done  in  any  banking  business.  But  we  think  the  Journal 
will  make  this  set  more  easily  understood  by  the  student.  When  it  is  to  be  posted  direct 
to  the  Ledger,  the  form  of  our  Private  Banker's  book  is  preferable.     See  p.  352. 


247 


t    Dr. 


Oi^SH 


1866. 

Dec. 


Iter 
Jan. 


Jan. 


1 
5 

6 
9 

10 
15 
18 


Capital  Stock 


Mar. 


19 
21 
2 

27| 
28i 
30! 
31 

9 
lOl 


a 

« 
// 
n 

H 


w 
w 
f 
ir 
» 
n 


Received  on  First  Instalment 


II 
n 
II 

H 


Discount  and  Interest 
Capital  Stock 


// 
u 
II 


II 
II 
u 

If 


Discount  and  Interest 
Capital  Stock 


IT 
« 

on  past  due  Instalments 
Second  Instalment 

» 

ft 

v 

n  If 

on  past  due  Instalments 
Third  Instalment 


u 


u 


lOJj   Depositors 

Iron  City  National  Bank 
1st  National  Bank,  Chicago 
1st  Nat.  Bank  New  Orleans 
Circulation 


Balance  bro't  down 

Per  Receiving:  Teller's  C. 


B. 


Feb.     15 


Balance  bro't  down 


Circulation 

Per  J 

ieceiv 

mgl 

eiic 

Bills  discounted 

•  ' 

H 

II 

Depositors 

» 

n 

n 

Exchange 

H 

n 

9 

16 


Balance 

\  bro't  down 

Circulation                               Per  Receiving 

'  Teller's  C.  B 

Bills  Discounted                        " 

u 

u 

Depositors                                  " 

w 

» 

1st  Nat.  Bank,  New  Orleans    n 

» 

M 

1st  Nat.  Bank,  Chicago             " 

» 

It 

Iron  City  Nat.  Bank                  " 

» 

ff 

9000 
36000 
3000 
6000 
67500 
43500 
15000 
10 
22000 
8000 
5000 
6000 
43000 
24000 
12000 
28 
102500 
197500 


50 


600038;  50 


399238 

12300 

1000 

1500 

500 

160000 


50 


5745381  50 


218471'  84 

232000 

7900 

21164 

136 


479671 


84 


3530711  84 

880001 
18600; 

6800; 

12001 

1600: 

1200, 


1868. 

Dec. 


im. 
Jan. 


Jan. 


Feb. 


Mar. 


10 


10 


15! 


470471!  84 


.ACCOUNT. 


Cb.    1 


Expense 


II 


United  States  Bonds 


Bank  Furniture 


P'd  Root,  Anthony  &  Co.,  for  Sta- 
tionery 

P'd  Times  &  Tribune,  Advertising 
//  for  200  5/20  Bonds  of  SIOOO 
each 

P'd  Ashley  &  Son's  bill 

Balance  to  n/a 


Depositors 

1st  Nat.  Bank,  Chicago 
1st    n         II       New  Orleans 
Foreign  Bills  of  Exchange 
Exchans:e 

United  States  Bonds  u        n  w 

Balance  to  n/a 


Per  Paying  Teller's  C.  B. 
n 

H 
It 


U 


It 


Depositors 

United  States  Bonds 

Iron  City  Nat.  Bank 

1st  Nat.  Bank,  Chicago 

1st  Nat.  Bank.  New  Orients 

E::  change 


Per  Paying  Teller's  C.  B. 

M  »  It 

It  II  H 

II  II  U 

II  II  tl 

1/  II  n 

Balance  to  n/a 


16  I   Depositors  Per  Paying  Teller's  C.  B. 

1st  Nat.  Bank,  Chicago  if        ii  it 

1st  Nat.  Bank,  New  Orleans    n         /'  w 

Iron  City  Nat.  Bank  //         //  n 

II         II  tt 


Foreign  Bills  of  Exchange 
Exchange 


//        //  n 

Balance  carried  forward 


150 

50 

200000 

600 

i 


600038 

50 

7900 

500 

1000 

44444 

44 

2222 

22 

300000 

1  21-iTl 

84 

5T4538 

50 

,„    ,  ' 

18600 

100000 

3564 

792 

352« 

116 

84 

479671 

84 

10300 

1188 

2352 

1782 

9.7.7.79 

22 

1189 

11 

1 

51 

470471 

84 

248 


249 


I 


I 

I 


■I 
It  .■ 


2    Dr. 


Oi^SH 


1867. 

Apr. 


15 


Bills  Discounted 

Depositors 

1st  Nat.  Bank,  New  Orleans 

Iron  City  Nat.  Bank 

1st  Nat.  Bank,  Chicago 

Baring  Bros.  &  Co. 

Exchange 


Bal.  bro't  forward 

Per  Receivinor  Teller's  C.  B. 


u 

tt 
u 

M 
H 
II 


If 

n 
» 


II 
If 
n 
u 

H 

n 


Certified  Check  unpaid ' 


May     14 


Balance  bro't  down 

Depositors 

Per  Receiving  Tell 

Discount  and  Interest 

W               »                     II 

Baring  Bros.  &  Co. 

»           »               n 

Exchange 

WW                    If 

Iron  City  Nat.  Bank 

WW                    II 

Bills  Discounted 

WW                    If 

Ist  Nat.  Bank,  Chicago 

WW                  w 

1st  Nat.  Bank,  Boston 

WW                  w 

June     12     Depositors 

Baring  Bros.  &  Co. 
Exchange 
Profit  and  Loss 
Discount  and  Interest 


Balance  bro't  down 

Per  Receiving  Teller's  C.  B. 


w 

w 

w 

w 

u 

u 
n 

w 
w 


Balance  bro't  down 


431438 
7200 
51100 
8000 
2000 
4000 
26666 

2666 

ROO 


51 


67 
67 


533871  85 


500606  85 

12788 

18000 

40000 

4112 

2 

5700 

6900 

2394 


590502'  85 


576799  10 
18984 
20003  50 
2116; 
2000' 
204  I  94 


620107  54 


603847 '  54 


.ACCOUI^T. 


1867. 

Apr. 


May 


15 


14 


Circulation 

Foreign  Bills  of  Exchange 

Exchange 

Depositors 

Expense 


Per  Paying  Teller's  C.  B. 


u  y 

II  tt 

If  If 

ff  tt 

Baliuicc  to  n/a 


June     12 


i  Depositors 
Iron  City  Nat.  Bank 
1st  Nat.  Bank,  Chicago 
Foreign  Bills  of  Exchange 


Exchange 


Per  Paying  Teller's  C.  B. 

//         //  If 

II         tt  tt 

II         II  tt 

II         n  tt 

Balance  to  i:/ii 


*  Checks  are  certified  with  the  understjinding  that  they  are  to  be  immediately  paid 
into  another  bank,  which  will  present  them  promptly  for  payment.  If  the  holder 
uses  his  check  for  a  distant  remittance,  if  unpaid  at  the  time  of  balancing  this  book 
it  must  be  re-entered,  as  in  this  case. 


Cr.« 


500 

20000 
1290 
8500 
2975 


Certified  Check  out* 

533871   85 

800 

Depositors 

Per  Paying  Teller's  C. 

B. 

4903   75 

Iron  City  Nat.  Bank 

II ,       II             If 

1980 

Bank  of  Montreal 

tt         tt             tt 

3564 

1st  Nat.  Bank,  Boston 

tt          u               u 

2394 

Exchange 

tt         tt             tt 

62 

Baliiucc  to  u/a 

5::::-    10 

590502  85 


8300 
2772 


2970 

2000 

218 

cor. -47  54 


250 


251 


I 


II  • 


I 


^ 


t  ;, 


a* 


FOKM  OF  A  POWER  OF  ATTORNEY  TO  TRANSFER  STOCK. 

'0r  HhIm  Sl^iCrfibi^ii' /if^^m  cmd^€^^e  a^ia  aMctn^  Uiepoca 

/lue  ana  /au/a/  a^dneu   fci 

name  ^o  /ian<^ui  ^o 


dialed  €n  meWa/uYa/C7€Cc^o/mr 

CITY  NATXaNAX^  BANK  OF  l^ll^'SSf  YORK. 

^7©ifneJ50 ^anc/ an</ dea/ da  aay,  ^. /o 


WiYneM   Aieden^. 


SEAL 


LETTER  OF  AUTHORITY  TO  SIGN  BUSINESS  PAPER. 

New  York,  June  30,  1867. 
Sir  :_I  have  to-day  authorized  my  Book-keeper,  Mr.  F.  L.  Rainbow,  to  sign  my  name 
to  Promissory  Notes,  Checlis,  ami  Drarts;  also,  in  like  manner,  to  use  nay  signal ii'^e  iii 
accepting  Orders,  Drafts,  and  Bills  of  Exchange ;  also,  in  endorsing  Promissory  Notes, 

Checks,  Drafts,  and  Bills  of  Exchange. 

Very  respectfully,  yours, 

W.  B.  ARCHER. 

To  the  Cashier  City  National  Bank, 

New  York. 


The  above  authority  must,  in  every  case,  be  strictly  observed  in  form  and  extent,  other- 
wise the  validity  of  the  act  may  be  endangered. 


JOURNAL, 


CITY   NATIONAL   BANK, 


JANUARY,  1867. 


Although  banks  do  not  generally  keep  this  book,  we  retain  it  to  enable  the  uninitiated 
to  understand  more  readily  the  process  of  arranging  the  contents  of  so  many  books  for  the 
General  Ledger.  When  this  book  is  kept,  the  Oeneral  Ledger  receives  no  entries  from 
any  other  book. 


253 


H 


I 


252 


I 


^\ 


NEW  YORK,  December  31, 1866. 


February  15,  1867. 


1 
1 

3 

3^ 

1 


1 
1 

1 
1 

2 


Cash,  Dr.  To  Sundries,  per  Gen'l.  C.  B.  1 
To  Capital  Stock  .         -         .         • 

//   Discount  &  Interest     . 


Tf 


300038    50 


Expense,  Dr., 

To  Cash,  per  Gen'l.  C.  B.  1 

Jan.  10, 1867.  = 

Cash,  Dr..  per  Gen'l.  C.  B.  1 
To  Capital  Stock      .         .         .         • 
n 

Sundries,  Dr.  To  Cash,  per  Gen'l.  C.  B.  1 

United  States  Bonds 

Bank  Furniture 


4 

4 
4 

1 
2 
4 
4 
2 
3 

2 
2 
3 
3 

1 
3 

1 
1 

4 
2 


Cash,  Dr.  To  Sundries,  per  Gen'l.  C.  B.  1 
To  Depositors      .         .         •         •         • 
ft   Iron  City  Nat.  Bank    .         .         •        . 
//   First  Nat.  Bank,  Chicago 
It   First  Nat.  Bank,  New  Orleans      . 


Sundries,  Dr.  To  Cash,  per  Gen'l.  C.  B.  1 
Depositors        .         •  •         * 

First  Nat.  Bank,  Chicago      . 
First  Nat.  Bank,  New  Orleans 
Foreign  Bills  of  Exchange  . 


Exchange 


n 


Bills  Discounted,  Dr.  To  Sundries,  D.  B.  1 
To  Depositors  .         .         •  •         • 

;/   Discount  &  Interest 

n   Exchange   .         •         • 

w 

Cash,  Dr..  per  Gen'l.  C  B.  1 

To  Circulation 


United  States  Bonds,  Dr.      . 
To  Cash,  per  Gen'l.  C.  B.  1 


200 


300000 


200000 
600 

15300 


300000 
38    50 


200 


300000 
200600 


Bmi^gB^others  &  Co.,  Dr.  .         •         •       -,;    ,,  '     j^ 
To  Foreign  Bills  of  Exchange  for  ^^own  Brothers  & 


Co.,  on  G.  Peabody 


£10000  St'g. 


Feb.  15. 


1 
3 
2 
2 
3 

1 
2 
1 
4 
4 
4 
3 


Cash.  Dr.  To  Sundries,  per  Gen'l.  C.  B.  1 

To  Circulation 

; «   Bills  Discounted 
ff   Depositors 


//    Exchange  . 


// 


Sundries,  Dr.  To  Cash,  per  Gen'l.  C.B.  1 

Depositors 

U.  S.  Bonds         .         •         •         •         • 

Iron  City  Nat.  Bank 

First  Nat.  Bank,  Chicago      . 

First  Nat.  Bank,  New  Orleans  . 

Exchange 

254 


7900 
500 
1000 
44444    44 
2222  ,  22 

12100 


160000 


300000 


44444    44 


261200 


il 


18600 

100000 

3564 

792 

3528 

116 


12300  I 
1000 
1500 
500 

56066 '  66 


11958  87 
89  13 
52 


160000 


300000 


44444    U 


232000 

7900 

21164 

136 

126600 


2 
2 
3 
3 


1 
3 
2 
2 
4 
4 
4 

1 
2 
4 
4 
4 
2 
3 

2 
2 
3 

4 
2 


Bills  Discounted,  Dr.  To  Sundries,  per  D.  B.  1  . 
To  Depositors       ...... 

//   Discount  &  Interest 

//   Exchange       .         .         .         . 

^-■= March  16.  -^= 


14400 


Cash,  Dr.  To  Sundries,  per  Gen'l.  C.  B.  1 
To  Circulation      ..... 
//   Bills  Discounted  .         .     •   . 

//   Depositors       ..... 
//   First  Nat.  Bank,  New  Orleans 
//   First  Nat.  Bank,  Chicago 
//   Iron  City  Nat.  Bank    . 


Sundries,  Dr.  To  Cash,  per  Gen^l.  C.  B.  1 

Depositors       ..... 

First  Nat.  Bank,  Chicago 

First  Nat.  Bank,  New  Orleans  . 

Iron  City  Nat.  Bank    .... 

Foreign  Bills  of  Exchange 

Exchange     ...... 


117400 


10300 
1188 
2352 

1782 
22222 


22 


Bills  Discounted,  Dr.  To  Sundries,  per  D.  B.  1 
To  Depositors      ...... 

//   Discount  &  Interest     .... 

It 


1189  jll 

I 
7200 


Baring  Bros.  &  Co.,  Dr.        ..... 

To  Foreign  Bills  of  Exchange,  for  Pollock  &  Gilmore, 


on  R.  Rankin  &  Co. 


£5000  St'g. 


1 
2 
2 
4 
4 
4 
4 
3 

1 
3 
2 
3 
2 
3 

2 
2 
3 
3 

4 
2 


April  15. 


Cash,  Dr.  To  Sundries,  per  Gen'l.  C.  B.  2 
To  Bills  Discounted  ... 

//   Depositors       ..... 

//    First  Nat.  Bank,  New  Orleans 

//    First  Nat.  Bank,  Chicago 

//   Iron  City  Nat.  Bank    . 

//   Baring  Bros.  &  Co. 

ft   Exchange  ...... 


Sundries,  Dr.  To  Cash,  per  Gen'l.  C.  B.  2 
Circulation       ..... 

Foreign  Bills  of  Exchange  . 
Exchange        ..... 

Depositors  ...... 

Expense  ...... 


ft 


Bills  Discounted,  Dr.  To  Sundries,  D.B.  1 
To  Depositors 

ft    Discount  &  Interest         .         .      '  . 

//    Exchange 


// 


Baring  Brothers  and  Co.,  Dr 

To  Foreign  Bills  of  Exchange,  for  Betts  &  Turner,  on 
Bold  &  Starkey    ....         £4500  St'g. 


255 


22222    22 


101633 


34 


500 

20000 
1290 
8500 
2975 

7300 


20000 


14267  60 
66  ,40 
66 


S8000 
18600 
6800 
1200 
1600 
1200 


39033    33 


7164 
36 


22222    22 


7200 
51100 

8000 

4000 

2000 
26666    67 

2666    67 


33265 


7253  12 
34  88 
12 


20000 


i 
f 


I 


i! 


'ii 


ii 


Ja 


J 


May  14,  1867. 


ash,  Dr.  To  Sundries,  per  Gen'l.  C.  B.  2 
To  Depositors      .         .         .         •         • 
Discount  &  Interest     . 


Baring  Bros.  &  Co. 


Exchange  . 

Iron  City  Bank 

Bills  Discounted 

First  Nat.  Bank,  Chicago 

First  Nat.  Bank,  Boston 


Sundries,  Dr.  To  Cash,  per  Gen'l.  C.  B.  2 
Depositors        .         .         .         •         • 
Iron  City  Nat.  Bank     .... 
Bank  of  Montreal    .... 
■  First  Nat.  Bank,  Boston 


Exchange 


Bills  Discounted,  Dr.  To  Sundries,  per  D. 
To  Depositors  .... 

tt    Discount  &  Interest 


B.  2 


//    Exchange 


89896 


June  12. 


Baring  Brothers  &  Co.,  Dr 

To  Foreign  Bills  of  Exchange,  for  Dyer  &  Morgan,  on 
Swainson  &  Willis         ....  £450  St'g. 


4903    75 
1980 
3564 
2394 
62 


6200 


Cash,  Dr.  To  Sundries,  per  Gen'l.  C.  B.  2 
To  Depositors 

w    Baring  Brothers  &  Co.    . 

w    Exchange  .         .         .         .         • 

If    Profit  &  Loss  .... 

It    Discount  &  Interest     . 


2000 


43308   44 


Sundries,  Dr.  To  Cash,  per  Gen'l.  C.  B.  2 
Depositors        ..... 
Iron  City  Nat.  Bank     .... 
First  Nat.  Bank,  Chicago 
Foreign  Bills  of  Exchange  . 
Exchange        .         .         . 


Bills  Discounted,  Dr.  To  Sundries.  D.  B.  2 

To  Depositors 

//    Discount  &  Interest 


»    Exchange 


8300 
2772 
2970 
2000 
218 

9200 


256 


12788 

18000 

40000 

4112 

2 

5700 

6900 

2394 


12903  75 


6062  30 
87  70 
50 


2000 


: 18984 
20003  50 
2116 
2000 
204  04 

16260 


im 


9014 
167    ^3 
18 


ii 


STOCK    LEDGER, 

CITY   NATIONAL   BANK, 


1867. 


1.  This  book  records  nothing  but  the  number  of  Shares  of  the  Capital  Stock  of  the 
Company  held  by  each  shareholder,  and  the  instalments  that  he  has  paid  upon  them.     Th. 
entries  are  first  obtained  from  the  Instalment  List.     When  transfers  afterwards  take  place. 
they  are  posted  to  this  Ledger  from  the  Transfer  Book. 

2.  The  aggregate  credits  of  this  Ledger  must   always   agree  with  the  credit  of  the 
"  Capital  Stock"  account  in  the  General  Ledger. 

3.  Keeping  these  accounts  in  alphabetical  order  enables  us  more  easily  to  keep  them  so 
on  the  Dividend  List. 

^  257 


5 


II 


e  ; 


(•i 


.1 

■1, 

i 


1      De. 

WM.  B. 

ARCHER 

• 

Ce. 

ShB. 

1866. 

Dec 

1867. 

Jan. 

10 
28 
10 

1st  Instalment 
2d         // 
3d         // 

Shs.    : 
2000 

60000 

40000 

,100000 

1 

J.  C. 

BAKER. 

1866u 
Dec. 

1867. 

Jan. 

5 

21 
9 

1 

1st  Instalment 
2d         // 
3d         // 

100 

■ 

3000 
2000 
5000 

BARCLAY, 

HOPE  &  CO. 

18fl& 

Dec. 

1867. 

Jan. 

1 

27 

9 

1st  Instalment 
2d          // 
3d         u 

300 

9000 
.6000 
16000 

i 

ROBT. 

BANKS. 

( 

1 
I 

1866. 

Dec. 

1867. 

Jan. 

15 

31 
10 

«. — 

1st  Instalment 
2d          // 
3d          // 

600 

18000 
12000 
30000 

J.  w. 

COX. 

1 

t 

i 

1 

1 

1866u 

Dec 

1867. 

Jan. 

5 

19 
9 

! 

1st  Instalment 
2d          // 
3d          // 

100 

3000 
2000 
5000 

J.  R 

COMPTON. 

1867. 

Mar. 

16 

G,  R.  Duncan 

( 

10 

1000 

1 

1 

1866. 

Dec 

1867. 
Jan. 

15 

28 
10 

l.st  Instalment 
2d          // 
3d          II 

30 

900 

600 

t500 

WILLI  A] 

u 

DRAPER. 

1866. 

Apr. 

15    G.  K.  Duncan 

1 

1.             ' 
20       2000 

i 

2000 

I: — 

1866. 

Dec 

1867. 

Jan. 

1 

1 

15 

28 
10 

1st  Instalment 
2d          // 
3d          // 

.20 

600 

400 

1000 

2000 

i 

GEO.  B. 

DUNCAN. 

] 

1 

1 

1  1867. 

J  Mar. 
Apr. 

16 
15 

J.  R.  Compton 
Wni.  Draper 

10 
20 

1000 
2000 

! 

258 


Dr 


P. 


1866. 

Dec. 

15 

1867. 

28 

,  Jan. 

10 

WM.  H. 


JAMES 


WM. 


RICHARD 


HARRIET 


DUPP. 


1st  Instalment 
2d  // 

3d  II 


Gft.     Si 


DUPP. 


She. 

100 

3000 

:      2000 

!   5000. 

1 

!          1 

1866. 

Dec 

1867. 

Jan. 


6 '  Ist  Instalment 
21  *  2d         // 
9    3d         H 


100 


HARPER. 


'     1866. 

Dec. 


1867. 

Jan. 


HAY. 


1866. 

Dec. 

1867. 

Jan. 


IRVIN  &  CO. 


I 


1966.  I 

Dec.  15  1st  Instalment 

1867.  30  2d 

Jan.  I  10  3d 


100 


LENOX. 


ROBERT 


LENOX. 


V 


\ 


1866. 

Dec 

1867. 

Jan. 


10    1st  Instalment 
25    2d 
9    3d 


// 


V 


100 


Sfc 


259 


3000 
2000 
5000 


5 

1st  Instalment 

500 

15000 

18 

1st 

II 

100 

3000 

19 

2d 

It 

1    10000 

30 

2d 

II 

2000 

9 

3d 

If 

30000 

9 

1st  Instalment 

200 

6000 

21 

2d          II 

4000 

9 

1 

3d          '1 

10000 

3000 
2000 
5000 


3000 
2000 
5000 


>i^ 


-  '  <l 


S     Bk 


THOS. 


WM. 


A*    C« 


T.  B. 


JOHN 


MITCHELL. 


Or. 


1866.  I 

Dec.  i  15    Ist  Instalment 

1867.  30    2d 


Jan.     10 


3d 


Sh8. 
500 


15000 
10000 
25000 


MAJOR. 


1866. 

; 

Dec. 

18    1st  Instalment 

300 

9000 

1867. 

30    2d         '/ 

6000 

Jan. 

10 

3d          '/ 

15000 

ROOT. 


1866.  I 

Dec.  10  '  1st  Instalment 

1867.  25    2d  If 
Jan.  10    3d          '/ 


100 


3000 
2000 
5000 


SMITH. 


1    1866. 

Dec. 

18 

1867. 

30 

,  Jan. 

10 

Ist  Instalment 
2d  '/ 

3d         u 


100 


3000 
2000 
5000 


WARD. 


i 

1866. 
1867. 

Jan. 

1 

5 

19 

9 

1st  Instalment 
2d         '' 
3d         " 

500 

1 

15000 
10000 
25000 

SAMUEL 

WARREN. 

1 
t 
1 
1 

uu 

15 
30 
10 

1st  Instalment 
2d          // 
3d          ft 

i 
100 

1 

1    3000 
3000 
6000 

• 

-    I 


RECEIYING  TELLER'S  CASH  BOOK, 

CITY  NATIONAL  BANK, 


JANUARY,  1867. 

Upon  the  left  page  are  entered  all  amounts  for  the  General  Ledger;  upon  the  right 
page,  all  amounts  for  the  Depositors'  Ledger,  into  which  each  Deposit  is  posted  as  indicated 
by  the  postmarks.  We  have  passed  the  amounts  of  both  sides  into  the  General  Cash  Book. 
By  comparing  this  book  with  the  General  Ledger,  the  titles  of  the  accounts  will  be  found 
so  distinctly  arranged  upon  it  as  to  admit  of  direct  posting  without  a  Journal  or  General 
Cash  Book. 


261 


2G0 


I, 


i 


RECEIPTS  FOR  GENERAL  LEDGER.    New  York, 


Iron  City  Nat.  Bank.  Eec'd  Check  on  Ist  Nat.  Bk.,  N.Y. 

Ist  Nat.  Bk.,  Chicago.  "      Draft  on  9th  Nat.  Bk.,  ^  .Y. 

Ist  Nat.  Bk.,  New  Orleans,     f      Draft  on  Chemical  Nat.  Bk. 
Circulation,  '/      of  U.  S.  Comptroller,  per  B.  N.  E.  1 

Circulation,  •  »  w         » 


1000 

1500 

500 

80000 

80000 


163000 


February 


t-  ■ 


< 


'  It 


Bills  Disoonnted, 


Circulation, 
Exchange, 


Eec'd  Gregg  &  Hall,  No.  1 
Mount,  Joy  &  Co.  2 
G.  W;  Leeds,  3 

Hay  &  Wood,  4 

Bateman  &  Hill,     6 


2000 
1000 
1800 
1600 
1600 


//      of  U.  S.  Comptroller,  B.  N.  E.  1        200000 
»  f  It         H       j!     32000 

tt      for  sundry  exchanges, 


7900 


232000 


136 


January  10,  1867.     FOR  DEPOSIT  LEDGER. 


l!  E.  Irvin&Co. 


Dep'd  Smith  on  Chemical  Bk. 

Draft  on  O.  H.  Bliss,  Chicago 
Bank  Notes 


1  E.  Lenox 

I ;  E.  C.  Eoot,  Anthony  &  Co. 

2  John  Ward 


2    Harriet  Lenox 

2  Harper  &  Bros. 

3 !  Barclay,  Hope  &  Co. 

3  DufF  Brothers  &  Co. 


J.  Carver 


Eyan  &  Dale 


//      Bank  Notes 

//      Cluley  on  9th  Nat.  Bk. 
//      Bank  Notes 

//       Bank  Notes 

Moore  on  1st  Nat.  Bank 
Lawson  on  4th  Nat.  Bank 

u      Bank  Notes 

w      Draft  on  F.  J.  Herron,  New  Orleans 
Bank  Notes 

»      Bank  Notes 

//      Coin 

Eobb  on  3d  Nat.  Bk. 

//      Bank  Notes 
u         »         u 

G.  C.  B.  1 


200 
500 
800 


1500 


1200 

600 
1000 

1600 

1000 
400 
400 

1800 

1000 

1000 
1000 

2000 

800 
1000 

500 
500 

600 

800 

12300 

15,  1867. 


1 1  E.  C.  Eoot,  Anthony  &  Co.  Dep'd  Bank  Notes 
1    E.  Irvin  &  Co. 


1  E.  Lenox 

3  j  Duff  Bros.  &  Co. 
5    A.  B.  Hunter 

2  I  Harper  &  Brothers 

4  Eyan  &  Dale 


2  I  Harper  &  Bros. 


E.  Irvin  &  Co. 


3  '  Barclay,  Hope  &  Co. 
1  I  E.  Irvin  &  Co. 

3  !  Jas.  Carver 

4  }  Lyon  &  Haven 


ir 

It 
a 
tt 
tt 


Brown  on  1st  Nat.  Bk. 
Bank  Notes 


1100 
700 


// 
ff 
// 
tt 


tt 
tt 
tt 
tt 


II      Coll.  on  Bates  &  Bell,  Pittsburgh    . 
Less  Exchange  \ 

Coll.  on  W.  S.  Hunter,  Chicago 
Less  Exchange 


Coll.  on  J.  Kane,  New  Orleans 

Less  Exchange 

Coll.  Baker  &  Fox,  City 

'/     Joel  Post,  // 

'/     E.  S.  Davis,       ii 

II    J.  B.  Marks,      ii 

G.  C.  B.  1 


1600 
48 


900 

1800 


- 

1400 

,   1000 

1    400 

2500 

3528 

3600 

72 

-■  -  ■ — 

7M 

800 

16 

155S 


1600 
2400 
1200 
2100 

21164 


IM 


RECEIPTS  FOR  GENERAL  LEDGER. 


Marcii 


Bills  Discounted 


'* ' 


I 


Ist  Nat.  Bk.,  New  Orleans 
Ist  Nat.  Bk.,  Chicago 
Iron  City  Nat.  Bk. 
Circulation 


Eec'd  Patterson  &  Wild,  No.  5 

J.  W.  Loring  7 

W.  Page  8 

Hay  &  Wood  9 

R.  Bruce  10 

Hunter  &  Co.  11 

J.  Morton  12 

J.  Carver  13 

Draft  on  Ryan  &  Dale 
Draft  on  R.  C.  Root,  Anthony  &  Co. 
I       Draft  on  Harper  &  Bros. 

of  U.  S.  Comptroller,  B.  N.  R.  1 
M  tt  a 

w  WW 

W  WW 

W  IT  » 

Q.  C.  B.  1 


1200 

1 
1 

3000 

3600 

2400  ' 

1800 

3300 

1200 

1 

2100 

1 

1 

18600 


40000 
20000 
10000 
10000 
8000 


1200 

1600 

1200 

88000 


110600 


April 


Bills  Discounted 


Ist  Nat.  Bk,,  New  Orleans 
Iron  City  Nat.  Bank 
Baring  Bros.  &  Co. 

Ist  Nat.  Bk.,  Chicago 
Exchange 


Eec'd  Day  &  Martin,  No.  14     . 

Hart  &  Bowman,  16 

Duncan,  Dunlap  &  Co.,         16 
Geo.  Wilde,  17 

our  Draft  No.  1,  favor  W.  B.  Morgan 
II  II    2,    // Kramer  &Rjihm 

//  Bill  //    1,  at  60  days'  sight 

favor  R.  Banks  &  Co.     £6000  St'g 

J.  Astley  &  Co. 

10  %  prem.  for  our  Bill  No.  1 


1500 

2400 

900 

2400 


7200 


II 
II 


II 
u 


G.  0.  B.  2 


8000 
2000 


26666  '67 
4000 
2666    67 


16,  1867. 


FOR  DEPOSIT  LEDGER 


2 


2  !  John  Ward 


2  Harriet  Lenox 

3  Barclay,  Hope  &  Co. 
5  ;  A.  B.  Hunter 

5  I  J.  W  Burnham 


Dep'd  S.  Hill  on  Union  Bk. 
Bank  Notes 

11  II         II 

It  n         u 

w  n         It 

u         n 
Ja«.  Wood  on  1st  Nat  Bk- 


1500 


800 
700 


1200 

1400 

1100 

1600 

700 

900 

G.  C.  B.  1 


6800 


I 


15,  1867. 


50533    34 


1    R.  Lenox 


1    R.  C.  Root,  Anthony  &  Co. 


Dep'd  Bank  Notes 

Hill  on  9th  Nat.  Bk. 


2 
2 
2 
3 
3 
4 
4 
5 
5 
5 
5 


John  Ward 
HarriPt  Lenox 
Harper  &  Brothers 
Dufl"  Bros.  &  Co. 
J.  Carver 
W.  B.  Archer 
Lyon  &  Haven 
Roy,  Wade  &  Co. 
J.  W.  Burnham 
R.  P.  Dufl* 
H.  P.  Ford 


// 

Banl 

c  Notes 

// 

Mackey  on  Chemical  Bk 

// 

Bank  Notes 

// 

n 

II 

w 

n 

II 

It 

n 

II 

H 

II 

II 

w 

II 

II 

w 

n 

n 

w 

II 

II 

n 

II 

II 

Certificate  of  Deposit  No.  1* 
II  If  II  2 

G.  C.  B.  2 


*  See  Form,  p.  274. 


1000 
2000 


3600 
1400 


3000 
5000 


2500 
1800 
5700 
6500 

2100 
10000 
4350 
3700 
1950 
2100 
2400 

51100 


264 


265 


I 


ir 


tiH^ 


''i 


RECEIPTS  FOR  GENERAL  LEDGER. 


May 


Discount  &  Interest 
Tiaring  Bros.  &  Co. 

Iron  City  Nat.  Bank 
Bills  Discounted 


1st  Nat.  Bk.,  Chicago 


1st  Nat.  Bk.,  Boston 
Exchange 


Baring  Bros.  &  Co., 


Profit  &  Loss 
Discount  &  Interest 
Exchange 


Rec'd  for  May  Coupons  /^  bonds 
If       II   Bill  No.  2  @  60  days  s'gt  in 
favor  of  C.Bell,  £9000  St'g 
protest  on  A.  J.  Turner,  No.  8,  ret'd 

11      J.  Barker  &  Co.,  No.  18 
S.  Lewis  &  Co.,  20 

J.  W.  Bliss  21 


// 


// 


Baker  &  Hill 
Porter  &  Dick 
W.  G.  Kay 

Draft  on  Chemical  Bank 

10  %  prem.  on  Bill  No.  2 
sundry  exchanges 


G.  C.  B.  2 


Rec'd  of  Stacy  &  Evans  for  No.  3  ret'd 
//      for  protest  on  do 

II      10  fo  damages  on  do 

»  Interest  on  do 

#      10^  premium  on  do 

sundiy  exchanges 


G.  C.  B.  2 


18000 
40000 

2 

5700 


6900 

8600 

2100 

1200 

\ 

2394 

1  ■ 

I 

4112 

4000 

i    112 

77108 


June 


20000 
3  50 


20003 


2000 

204 

2116 


2000 
116 


60 


94 


44 


266 


14,  1867. 


FOR  DEPOSIT  LEDGER. 


3 


E.  C.  Root,  Anthony  &  Co. 


Duff  Brothers  &  Co. 


Harriet  Lenox 
5  I  G.  R.  Duncan 
1    R.  Irvin  &  Co. 


2 


Harper  &  Bros. 
R.  Lenox 


Dep'd  Bank  Notes 
Coin 

Dep'd  Bank  Notes 
Coin 

//  // 

Certificate  of  Deposit  No.  3 

Coll.  R.  Glass  &  Co.,  Pittsburgh 
Less  Exchange 


Coll.  W.  Payson,  Pittsburgh 
Less  Exchange 

Coll.  G.  Wilde  &  Co.,  Montreal 
It    J.  Carter,  // 

Less  Exchange 

G.  C.  B.  2 


[ 

3000 

i   1400 

1600 

2000 

1100 

900 

ii 

1100 

1200 

784 

I        800 

16 

1' 

1176 

j   1200 

'■    24 

2400 

3528 

1200 

3600 
72 

12,  1867. 


4  Lyon  &  Haven 

5  A.  B.  Hunter 

Duff  Bros.  &  Co. 

2    Harriet  Lenox 

R.  C.  Root,  Anthony  &  Co. 

1    R.  Lenox 

4   W.B.Archer 

Lyon  &  Haven 


Dep'd  Coin 

Bank  Notes 

II      Brown  on  4th  Nat.  Bk. 
Coin 

u      Coin 

Jones  on  Winslow,  Lanier  &  Co. 

ff      Bank  Notes 

u       Coll.  J.  L.  Dixon 

'/     Day  &  Martin 

H      Coll.  W.  Burton 
Jas.  Carver 

It      Coll.  C.  H.  Ball,  Pittsburgh,    800 
It         II      J.  Home,         //  2000 

Less  Exchange 

M      Coll.  W.  Baker,  Chicago 
Less  Exchange 

G.  C.  B.  2 


700 
600 


900 
300 


1200 
900 


1600 
1100 


2400 
1800 


2800 
5iS 

3000 
60 


12788 


I 


■i 


1300 
1200 
2100 


1800 
2700 


4200 
2744 

2940 
189S4 


267 


,  I 


it 


REGISTER  OP  SIGNATURES. 


Jan. 
Mar 


Jan. 


Jan. 


Jan. 


10  '!  Barclay,  Hope  &  Co.,  by  A.  C.  Barclay 
16  1  J.  W.  Burnham 


10 


t 

10! 


€. 


James  Carver 


]>. 


10 


Duflf  Brothers  &  Co.,  by  Win.  H.  Duff 
Duflf  Brothers  &  Co.,  u   T.  C.  Duff  . 
Duff  Brothers  &  Co.,  //  B.  P.  Duff     . 


Harper  &  Brothers,  by  John  Harper 
Harper  &  Brothers,  //    James  Harper 


I. 

Jan.   10    Richard  Irvin  &  Co.,  by  E.  Irvin 


Jan 


10  :  Lyon  &  Haven,  by  Wm.  M.  Lyon 
Lyon  &  Haven,  //   J.  W.  Haven  . 

Robert  Lenox 

Harriet  Lenox 


R. 


Jan.  -10'  R.  C.  Root,  Anthony  &  Co.,  by  R.  C.  Root  . 


R.  C.  Root,  Anthony  &  Co.,  / 
R.  C.  Root,  Anthony  &  Co., 
Ryan  &  Dale, 
Feb.   15    Roy,  Wade  &  Co., 


J.  Anthony,  Jr. 
A.  S.  Allison  . 
W.  L.  Eyan  . 
J.  C.  Roy  .     . 


w. 


Jan.   10    John  Ward 


City 


City 


City 


City 


City 


City 

9 


City 

H 

K 
0 


City 


J.  J.  Jones.* 


PAYING  TELLER'S  CASH  BOOK, 


CITY  NATIONAL  BANK, 


JANUARY,  1867. 


1.  This  book  is  of  the  same  form  as  the  Receiving  Teller's  Cash  Book,  the  left  page 
recording  all  transactions  for  the  accounts  of  the  General  Ledger,  and  the  right  page  for  the 
Depositors'  Checks  paid  and  certified,  and  for  Certificates  of  Deposit.  Although  we  have 
passed  the  contents  of  this  book  into  the  General  Cash  Book,  the  Accountant  will  soon 
perceive  that  the  arrangement  of  the  Ledger  titles  enables  him  to  post  them  direct  from 
here  as  easily  as  from  a  Journal.  When  this  mode  of  posting  is  adopted,  no  General  Cash 
Book  is  required, — the  balance  of  that  account  being  obtained  from  the  Cash  account  in  the 
General  Ledger. 


261) 


*  In  this  book  the  Bank  ought  to  have  registered,  in  alphabetical  order,  the  signatures  of  all  per- 
«)n9  keeping  accounts  with  it;  and  these  signatures  should  be  witnessed  by  the  Paying  Teller,  or  some 
other  officer  of  the  Bank. 

268 


!; 


PAYMENTS  FOR  GENERAL  LEDGER. 


New  York, 


1st  Nat.  B'k,  Chicago         Fd  Draft  on  0.  H.  Bliss 
1st  Not.  B'k,  New  Orleans    //        "       "    F.  J.  Herron 
Forei<^n  Bills  of  Exchange    '/    for  Brown,  Brothers  &  Co.,  on 

G.  Peabody  for  £10,000  St'g 
Exchange  "    5%  Premium  for  do. 

U.  S.  Bonds  /'    for  300  5/20  Bonds  of  $1000 

each 

G.  C.  B.  1 


500 

1000 

44444 

2222 


44 
22 


300000 
348166  66 


Iron  City  Nat.  Bank 


1st  Nat.  B'k,  Chicago 


1st  Nat.  B'k,  New  Orleans 


U.  S.  Bonds 


Exchange 


Fd  Coll.  Bates  &  Bell 
Less  Exchange 

//    Coll.  W.  S.  Hunter 
Less  Exchange 

//    Coll.  Gregg  &  Hall  2000 

„      I,     J.  Kane  J600 

Less  Exchange 
f>    for  100  5/20  Bonds  of  $1000 

each 
n    Sundry  Exchanges 

G.  C.  B.  1 


February 


3564 


792 


3528 


3600 

72 


100000 
i       116 

! 108000 


March 


1st  Nat.  B'k,  Chicago 


1st  Nat.  B'k,  New  Orleans 


Iron  City  Nat.  B'k 


Fd  Coll.  Patterson  &  Wild 
Less  Exchange 

u    Coll.  Hay  &  Wood 
Less  Exchange 

//    Coll.  R.  Bruce 
Less  Exchange 


1200 
12 

2400 
48 

1800 

18 


1188 


2352 


1782 


Foreign  Bills  of  Exchange   if    for  Pollock  &  Gilmore  on  R.  : 

Rankin  &  Co.,  for  £5000  St'g  • 


Exchange 


n    5%  Premium  on  ditto 
//    Sundry  Exchanges 

G.  C.  B.  1 


22222 

1189 


1111    11 
78 


28733  33 


22 

11 


270 


January  10, 1867. 


Jj'OR  DEPOSIT  LEDGER 


2  Harper  &  Bros. 

3  Barclay,  Hope  &  Co. 

4  W.  B.  Archer 
4  Lyon  &  Haven 

1  Rich'd  Irvin  &  Co. 


Paid  Check 


If 
» 

ff 


H 
H 

n 
w 


G.  C.  B.  1 


1800 
1500 
1000 
1200 
2400 


7900 


15th,  1867. 


2 

Harper  &  Bros. 

Paid  Check 

1 

R.  Irvin  &  Co. 

\i 

u 

1 

R.  C.  Root,  Anthony  &  Co. 

II 

II 

1 

R.  Lenox 

It 

» 

3 

Duff  Bros.  &  Co. 

» 

ff 

2 

Harriet  Lenox 

If 

» 

2 

John  Ward 

H 

If 

4 

Lyon  &  Haven 

If 

It 

3 

Jas.  Carver 

H 

a 

4 

Ryan  &  Dale 

ft 

I 

4 

W.  B.  Archer 

It 

H 

5 

Roy,  Wade  &  Co 

If 

G.  C. 

H 

\ 

B.  1 

1500,  1000 


600,  500 

1500,  1000 

300,  400,  600 

600,  200 
1400,  1600 


2000 
2100 

600 
2500 
1100 

600 
1100 
2500 
1300 

800 
3000 
1000 

18600 


I 


leth,  1867. 


5 

,5 

5 

4 
3 

!3 
3 


J.  W.  Burnham 

Paid  Checks 

A.  B.  Hunter 

U             tt 

Roy,  Wade  &  Co. 

It         n 

Ryan  &  Dale 

n         » 

J.  Carver 

U            It 

Barclay,  Hope  &  Co. 

It        n 

Duff  Bros.  &  Co. 

II             .7 

500, 

700 

200, 

100 

400, 

600 

2000, 

500 

1600, 

400 

1200,  1000 


G.  C.  B.  1 

The  left  money  column  is  used  for  short-extendinu  checks  where  one  depositor 
draws  a  number  on  one  day. 


1200 
300 
1000 
2500 
2000 
1100 
2200 


10300 


271 


PAYMENTS  FOR  GENERAL  LEDGER. 


Circulation  P'd  mutilated  ret'd  per  B.  N.  R.  1 

Foreign  Bills  of  Exchange    //    for  Betts  &  Turner  on   Bold 

&  Starkey  for  £4500  St'g 

Exchange 

//    6%  Premium  for  ditto 

If    1%  disc't  on  our  Dr'ft  No.  1 


// 


Expense 


i% 


II 


II         II 


II 


11 


II    Rent  to  April  1st 
II    Salaries  to  April  1st 

G.  C.  B.  2 


1000 
1975 


Iron  City  Nat.  B'k 


Bank  of  Montreal 


1st  Nat.  B'k,  Boston 


Exchange 


Fd  Coll.  R.  Glass  &  Co. 
//       H      W.  Pay  son 
Less  Exchange 

II    Coll.  G.  Wilde  &  Co. 
9      //     J.  Carter 
Less  Exchange 

n    Coll.  J.  Barker  &  Co. 

Less  Exchange 
n    Sundry  Exchanges 

G.  C.  B.  2 


2400 
1200  3600 
36 


2400 
6 


Iron  City  Nat.  Bank 


Fd  Coll.  C.  H.  Ball 
u      II     J.  Home  &  Co. 
Less  Exchange 


800 
2000  ii2800 
28 


1st  Nat.  B'k,  Chicago 

V    Coll.  W.  Baker 
Less  Exchange 
Foreign  Bills  of  Exchange    //    for  Dyer  &  Morgan  on  Swain- 
son  &  Willis,  £450  St'g 
Exchange 

n    %ffo  Premium  on  ditto 
'/    Sundry  Exchanges 

G.  C.  B.  2 


3000 
30 


160 
58 


272 


April 


1200 

1 

80 

10 

500 
20000 

1290 


2975 


24765 


May 


1980 


3564 


2394 


62 

8000 


June 

2772 


2970 

2000 
218 

7960 


ISth,  1867. 


FOR  DEPOSIT  LEDGER. 


Paid  Check 


// 


II 


R.  Irvin  &  Co. 

R.  Lenox 

R.  C.  Root,  Anthony  &  Co.  Certified  Check 

Harriet  Lenox  Paid  // 

Duff  Brothers  &  Co.  Certified*  // 

A.  B.  Hunter  //  it 

John  Ward  Paid  // 


Paid 

Certified 

G.  C.  B.  2 


14th,  1867. 


Harper  &  Bros. 
Harriet  Lenox 
John  Ward 
J.  Carver 
Ryan  &  Dale 
R.  Lenox 
Lyon  &  Haven 


400,  500 


Paid  Checks 

n  u 

"  »                 300, 400,  700 

"  *                          200,  300 

»  »                         600,  800 

//  Protest  on  No.  8,  ret'd 

ff  //        //     //  19 


G.  C.  B.  2 


12th,  1867. 


Paid  Check 


Harriet  Lenox 

Jno.  Ward  #  n  600,  500 

Duflf  Bros.  &  Co.  //  II  200,  300 

R.  C.  Root,  Anthony  &  Co.     n  u  400,  500 

W.  B.  Archer  u  n  300,'  900 

R.  P.  Duflf                           Certificate  of  Deposit  No.  1 

G.  R.  Duncan  u  u        u         «    3 


G.  C.  B.  2 


•  bt*  Form,  Pago  274. 


900  i 

700 

1400 

500 

1400 

2 

175 


4903  75 


1300 
1100 
500 
900 
1200 
2100 
1200 


I 


8300 


273 


f 


M 


TELLER'S  STATEMENT,  January  10th,  1867. 


"  City  National  I>aak"  Notes 

Legal  Tender  » 

National  Bank  » 

Gold 

Silver 

Checks  and  Drafts 

Memoranda 


Receipts 
Payments 


A.M. 

P.M. 

1 

10000 

150000 

150000 

160000 

44500 

87000 

10000 

2288  50 

1871 

84 

2100 

399238  ,50 

218471 

84 

175300 

356066 

66 

574538  50 

574538 

50 

A  CERTIFICATE  OF  DEPOSIT. 


itij  Sati0nal  %mh  of  Seto  flmrb, 

^  ^  ^  -e      ^ 


u//^:  /cf^'/. 


m 


has  deposited  in  this  Banh 


^    WZfi  '^Ao€e4am^  ^ne^^l^Ufk^  '^I>oll^^    payable  to  his 
order  on  j^eturn  of  this  certificate  properly  endorsed. 

0 


\$^fi)0.^ 


^^^//,   CASHIER. 


ll 


-^ 


THE 


OrrERIJ^G    BOOK, 

« 

CITY  NATIONAL  BANK, 


JANUARY,  1867. 

1.  This  is  a  memorandum  of  the  business  paper  offered  to  the  Board  of  Director^  for 
discount.  The  owner  endorses  his  signature  on  each  piece  of  paper.  If  rejected  it  i^ 
returned  to  him.  If  accepted,  it  is  numbered,  and  entered  in  the  Book  -Notes  and' Bilk 
Discounted." 


275 


I.    rhis  certificate  is  negotiable  either  by  blank  or  special  endorsement.    (See  Entry,  p.  265.) 


w 


li\ 


m"^^ 


t 


i 

mm 


lUSL. 


A  CERTIFIED  CHECK. 


A> 9....r^^€ii4c/ife<t- 


^   W^^^!/iin4i^ 


...ci  t^eaiet, 


STAMP. 

#1  i^-. 


E. 


^f^0  ^ioM^  ^  ^. 


274 


H: 


lil 


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7-i 


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§ 


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00  i^    «  So  O  00  w    ^  25 


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Ph  &.  Cu,  &,-g 

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o  o    o    o    .  , 

O  O     O     U     0) 


QJ 


o  o  o  o  o 
o  o  o  o  o 

•^  CO  O  00  CO 

C<1  tH  T-(  tH  T-H 


C    t- 


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^  o   *   o 
O  o 


1-3  1-^ 


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CQ     ;^ 


W      O 

»-i    O    t;    »- 

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03 


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CQ 


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2-77 


8 


g 

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« 


KKi- 


NOTES  AND  BILLS  DISCOUNTED 


No 


Drawer. 


Harper  &  Bros. 
Note 


W.  B.  Archer 
Note 


'/ 


Endorser. 


W.  S.  Haven 
J.  W.  Biirnham 
W.  S.  Murray 
Joel  Post 
R.  C.  Root 
Hardy,  Jone.-^  &  Co. 
R.  Banks 


Payer. 


Gregg  &  Hall 
Mount,  Joy  &  Co. 
G.  W.  Leeds 
Hay  &  Wood 
Patterson  &  Wild 
Bateman  &  Hill 
J.  W.  Loring 


Payable  in 


New  Orleans 

aty 

It 

il 
Chicagu 
City 


Note.— 1.  All  paper  discounted  by  the  Board  is  ontered  in  this  book.    It  is  the  property  of  the  Bank,  and  differs  irom  paper 
received  for  collection.    Protested  paper  is  registered  in  the  "  Protest"  Book. 

NOTES  AND  BILLS  DISCOUNTED 


8 


Note 
91      » 
id       n 


11 
12 
13 


n 
» 


W.  B.  Archer 
Wm.  Irons 
John  Doe 
Dufl"  Bros.  &  Co. 
Lyon  &  Haven 
J.  W.  Ryan 


Wm.  Page 

Hay  &  Wood 

R,  Bruce 

M.  Hunter  &  Co. 

J.  Morton 

J.  Carver 


City 

New  Orleans 

Pittsburgh 

City 


u 
It 


NOTES  AND  BILLS  DISCOUNTED 


14 
15 

16 

17 


Note 


Smith  &  Beck 
Paul  Cooper 

Wm.  Porter 

J.  Ward 


Day  &  Martin 
Hart  &  Bowman 

Duncan,  Dunlap  &  Co. 

G«o.  Wildes 


City 

H 
U 


NOTES  AND  BILLS  DISCOUNTED 


181 
19 
'  20i 
21 


Note 
II 
n 
n 


J.  Carver 
R.  Morris 
J.  Barker 
Porter  &  Hill 


J.  Barker  &  Co. 
J.  Kane 
S.  Lewis  &  Co. 
J.  W.  Bliss 


*  Boston  (sent  IstNat.  B'k, 
City 


•  Where  we  have  only  an  occasional  collection,  it  is  unnecessary  to  open  an  account  on  the  •  Bills  Remitted  for  C!ollectiou" 
Book.    The  above  memorandum  is  sufficient.    See  P.  T.  C.  B.,  "272,  and  R.  T.  C.  B.,  266. 

278 


Thursday,  January  10,  1867. 


Discounter.             Date. 

;    Time.           Due. 

Anuiunt. 

Int. 

Exch. 

Int.  k          Net 
Exch.      Pnx;eeds. 

:^ 

^lien 
PakL 

1S66 

1867. 

lfe«. 

Harper  ^<  T>ro;>,  1  )ec. 

1 

2  mos.  Feb.     4 

25,12% 

2000 

8i33 

40 

48.33    195167 

2 

Feb    15 

RvMM  tfc  Dale      Nov. 

12 

?.    II              ,15 

36 

1000 

6 

6           994 

4 

15 

Barclay,  Hope    Dec. 

14, 

60  ds.             15 

36!       1 

1800 

10  80 

10  80    1789  20 

3 

15 

J.  Carver           | 

14! 

1  60  '/               15 

36 

1600 

9  60 

9  60    1590  40 

3 

U 

W.  B.  Archer     Nov. 

10 

4  mos    Mar.  13 

62   1%' 

1200 

12  40 

12 

24  40    1175  60 

4 

Mar.  16 

Lvon  c'v-  Haven  Dec. 

14 

60  d:-'.    Feb.   15 

36 

1500 

9 

9         1491 

4 

Feb.  15 

R.  Irvin  &  Co. 

14 

i 

3  mos.  Mar.  17 

66 

1 

3000 

33 
8913 

52 

33         2967 
141 13  11958  87 

1 

Mar.  16* 
Deprs 

8913 

Int. 

1! 

t 

52 

Fxch. 

i 

12100 

12100 

Jour.  1  * 

*  Mar.  17  was  Sundtiy. 

f  The  Journal  explains  how  to  post  these  matters  direct  to  General  Ledger. 


Friday,  February  15,  1867. 


1866. 

W.  B.  Archer  Nov.  13 
R.  Irvin  &  Co.  Oct.  8 
Roy,  Wade  &  Co  Sept.  9 
DuffBros.&Co.  1867.  13 
R.  Lenox  Feb.  11 

Root,  Anthony 

&  Co.  Jan.  12 


|16 

29 

3600 

11 

24 

■2% 

2400 

12 

25 

1% 

1800 

16 

29 

3300 

.16 

1 

29 

1200 

16 

29 

, 

2100 

1 

i 

1 

14400 

1 

i 

,  - —  - 

17  40 

17 

40    3582  60 

4 

Mar.  16 

9  60 

48 

57 

60    2342  40 

1 

1« 

7  50 

18 

25 

50    1774  50 

5 

1§ 

15  95 

15 

95    3284  05 

3 

1« 

5  80 

5 

80    1194  20 

1 

16 

1015 

10  15    2089  85 

1 

16 

60  40 

66 

132  40  14267  60 

Deprs. 

66  40 

Int. 

66 

Exch. 

Saturday,  March  16,  1867. 


i 

1867. 

i 

■                   1867. 

A.  B.  Hunter 

Jan. 

12 

3  mos.   Apr. 

15 

30 

!  1500 

J.  W.  Burnham 

Feb. 

1S66. 

11 

60  ds. 

15 

30 

2400 

DuftBros.&Co^ 

-Dec. 

12 

4  mos.           15 

30 

90(^ 

1867. 

John  Ward 

Mar. 

13 

1 

1 

30  ds. 

1 

i  1 

'  i 
1  ' 

1 

15 

30 

j          2400 
7200 

7  50; 

12    Ij 

4  50 

12 
36 


J.  Carver  |!Apr. 

Lyon  &  Haven  \  Feb. 
W.  1>.  Arcber   i  Jan. 


Rvan  &  Dale 


Mar.  12 


Monday,  April  15,  1867. 


1867. 

May 

13 

28 

14 

29 

14 

29 

14 

29 

V/c 

2400 

II 

1  1600 

1500 

1800 

7300 


14400 


Jour.  2 


7  50    1492  50  5    Apr.  15 
12         2388        5  15 


4  50 

12 
36 


895  5a  3 

2388        2 

7164 
36 

7200 


15 

Deprs. 
Int. 

Joor.  2 


1120 

12 

23  20 

2376  80 

3 

May  14 

7  73 

1      7  73 

1592  27 

4 

Prot'd 

725 

7  25 

1492  75 

4 

May  n 

8  70 

'      8  70 

1791  30 

4 

14 

3488 

12 

46  88 

7253  12 
34  8S 
12 

Depn. 

Int. 

Exch. 

7300 


Jour.  2 


^7^^ 


NOTES  AND  BILLS  DISCOUNTED 


No> 


Drawer. 


22  A.  J.  Pierce 

23  Harper  &  Bros. 

24  Note 

26  A.  Stewart  &  Cb. 


Endorser. 


J.  W.  Burnham 
J.  Betts  &  Co. 
Lyon  &  Haven 
J.  W.  Myers 


Payer. 


Payable  in 


Hay  &  Wood 
J.  R.  Weldin  &  Co. 
Davy,  Jones  &  Co. 
J.  Home 


New  Orleans 
Pittsburgh 
City 
Pittsburgh 


Tuesday,  May  14,  1867. 


Discounter.             Date.  Time.          Due.       2  S  ,.£  5^  Amount. 

P^    t^« 

1867.  1867. 

John  Ward         May  14  90  ds.   Aug.  15  93*  2%  1200 

Barclay,  Hope   -         14  60  //     July  16  63    1%  800 

Lyon  &  Haven              1  3  mos.  Aug.    4  82  2400 


t 


Int. 


Exch. 


Roy,Wade&Co 


14,:90ds. 


15  93    1%     1800 


6200 


IS  60  24 
840    8 

32  80 
27  90  18 


lut.  & 
Exch. 


Net 
Proceeds. 


Wheu 
Paid. 


12  60  1157  40  2 

16  40  783  60  3 

32  80  2367  20  4 

45  90  1754  10  5 


87170  50      137  70    6062  30 

87  70 

I    If      i     'I  6200 


Depis. 

Int. 

Excb. 

Jour. » 


*  In  some  States  the  law  authorizos  the  banks  to  charge  interest  for  th.-  di.y  o!  discount  and  dav  of  payment       In  New 
York  the  rule  is  as  stated  p.  45.  .        i   j  mu  .^^m 


I 


i 


NOTES  AND  BILLS  DISCOUNTED 


26 

27 
28 
29 
30 


Harper  &  Bros. 
Note 

// 

J.  West  &  Co. 
Note 


Harper  &  Bros. 
J.  Page 
A.  T.  Howden 
Barclay,  Hope  &  Co. 
R.  Irvin  &  Co. 


W.  G.  Johnston  &  Co. 
A.  B.  Weed 
J.  Gardner 
F.  L.  Rainbow 
R.  Banks 


Pittsburgh 
City 

// 
Pittsburgh 
City 


1.  This  is  a  register  of  all  Foreign  Bills  of  Exchange  usually  bought  by  the  President  under  (By- 
Board.    But  this  paper,  being  usually  bought  at  a  premium,  cannot  be  registered  on  "  Bills  Discounted" 

Foreign  Bills 


When 
received. 


1867. 
Jan. 
Mar. 
Apr. 
June 


No. 


Drawers. 


10 

1 

16 

2 

15 

3 

12 

4 

DraweoH. 


Endorsers. 


Brown  Brothers  &  Co. 
Pollock  &  Gilmore 
Betts  &  Turner 
Dyer  &  Morgan 


George  Peabody 
R.  Rankin  &  Co. 
Bold  &  Starkey 
Swainson  &  Willi? 


Wm.  Page 
Marks  &  Cowden 
Stacy  &  Evans 
W.  Martin 


280 


Wednesday,  June  12,  1867. 


1867.  1887.  i  :  I 

Harper  &  Bros.  June  12    60  ds.    Aug.  14     63'!%'     600 ' 

3  113;  1600 

4  ;  84!       i!  1800 
8!ll8l!l%     1200 

13  123        ,   40001 


J.  W.  Burnham  May  30    4  mos. 
A.  B.  Hunter     June    1    3    // 
Barclay,  Hope  5 

R.  Irvin  &  Co.  10 


3 

4 

,4 


aos.jpct. 
"      jSept. 
'/      Oct. 


// 
// 


6  30    6 
3013 
25  20 
23  60  12 
12  _ 

167  23   18 


12'30 

'    587 

70 

2 

30  13 

1569 

87 

5 

25  20 

1774 

80 

5 

3;5  60 

1164 

40 

3 

82   _ 

3918 

1 

185  23 

9014 

Dej.™. 

167  23 

Int. 

18 

fixch. 

9200 


9200 


Jour,  -t 


BILL    BOOK. 

Laws,    Article X.)  direction  of  the  Board;  or,  if  desired,  each  transaction  may  be  suUiiItied  to  the 
book  without  changing  its  form. 

of  Exchange. 


Where  drawn. 


Dated. 


Sight. 


New  York 
Montreal 
Toronto 
New  York 


1867. 

I 

Jan. 

10 

Mar. 

5 

Apr. 

10 

June 

12 

Payable  in. 


Amount. 


Wnen 
Uemitted. 


Memoranda. 


i60 

days     1 

■60 

// 

30 

" 

60 

* 

! 

I 

II 

London 
Liverpool 

'  II 
London 


£ 

10000 

6000 

4500 

450 


s.    d. 


1867. 

Jan. 
Mar. 
Apr. 
June 


12    Jour.  1  * 
16  i;  2 

15  2 

12  ;  3 


*  See  ulao  P.  T.  C.  B.  1. 
281 


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pes 
Pi 
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Pi 


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9 
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P, 


BANK-NOTE  REGISTER, 

CITY  NATIONAL  BANK, 


JANUARY,  1867. 

1.  This  book  registers  all  Bank-notes  received  from  the  Comptroller  of  the  Currency. 
As  they  are  signed,  they  pass  into  the  Receiving  Teller's  Cash  Book  as  money.  Whoii 
mutilated,  and  returned  to  the  Comptroller,  they  pass  into  the  Paying  Teller's  Cash  Book 
to  credit  of  Cash  and  debit  of  "  Circulation." 


283 


282 


U 


li 


BANK-NOTE 


REGISTER. 


II 

I»BU£I>. 

1  ! 

IMPIUS-I 
SIOSS.  I 

Let* 

TEB. 

A 
B 
C 
D 

Date.   ! 

Ii 

Teeascrt  Number. 

Bask  Numbkk. 

Dbnomi 

NATIOK. 

Amount. 

20000 
20000 
20000 
20000 

Mem. 

1887. 
Jan. 

101 

i 

10 

15 

15 

16 

16 

16 

16 

16 

1 

t 

4000 
4000 
4000 
40001 

1867. 

Jan. 

Jan, 

Jan. 

Jan. 

Jan. 

Jan. 

Jan. 

1 

I 
Jan 

Jan 

5 

r 

5 

5 

1 
5 

m 

O 

5 
5 
5 
5 

324001  to  328000 
324001  //  328000 
324001  //  328000 
324001  II   328000 

328001  to  330000 
328001  //  330000 
328001  //  330000 
328001  //  330000 

415001  to  425000  : 
415001  //  425000 
415001  II   425000 
415001  //  425000 

425001  to  425800 
425001  II   425800 
425001  '/  425800 
425001  '/  425800 

;  430001  to  430500 

!  430001  //  430500 

430001  //  430500 

430001  //  430500 

430501  to  480600 
430501  II   430600 
430501  II   430000 
430501  V  430600 

430601  to  430625 
430601  II   430625 
430601  "  430625 
430601  "  430625 

!  430626  to  430630 

i  430626  //  430030 

430626  //  430630 

430626  //  430630 

'  430631  to  430632 
430631  //  430632 
430631  //  430632 
430631  /'  430632 

1  to  4000 
1  //   4000 
1  II     4000 
1  //  4000 

4001  to  6000 
4001  //  6000  I 
4001  //  6000  1 
4001  //  6000 

6001  to  16000 
6001  '/  16000 
6001  '/  16000 
6001  '/  16000 

16001  to  1680Q 
16001  '/  16800 
16001  /'  16800 
16001  "  16800 

16801  to  17300 
16801  //  17300 
16801  '/  17300 
16801  II   17300 

17301  to  17400 
17301  //  17400 
17301  /'  17400 
1730.  "  17400 

17401  to  17425 

17401  II   17425 

17401  '/  17425 

1  17401  //  17425 

17426  to  17430 
;  17426  II   17430 

17426  //  17430 
{  17426  II   17430 

17431  to  17432 
17431  //  17432 
17431  II   17432 
17431  //  17432 

t 

58 

5s 

5sl 

58 

lOs 

10s'. 

10s 

lOs 

5s 
5s 

58 
58 

lOsi 
lOsj 
10s' 
lOs 

208 
208 
208 
208 

508 
508 
508 

50s 

lOOs 
100s 
100s 
100s 

5008 
5008 
5008 
500s 

i 

1000s 
lOOOs 
1000s 
1000a 

A 
B 

80000 

R.T.(3.B.l 

2000 
2000 
2000, 

2000 ; 

20000 
20000 
20000 
20000 

80000 

R.T.C.B.  1 

Feb. 

10000 
10000 
10000 
10000 

A  1 
B 
C 
D 

A 
B 
C 
T) 

50000 
50000 
50000 
50000 

200000 

R.T.C.B.1 

800 
800 
800 
800 

8000 

8000 

8000 

,   8000 

% 

A 
B 
C 
D 

A 
B 
C 
D 

A 
B 
C 
D 

A 
B 
C 
D 

A 
B 
C 
D 

32000 

R.T.C.B.1 

Mar. 

500 
500 
500 
500 

t 

10000 
10000 
10000 
10000 

40000 

• 

R.T.C.B.2 

100 
100 
100 
100 

5000 
5000 
5000 
5000 

20000 

R.T.C.B.2 

25 
25 
25 
25 

2500 

2500 

!  2500 

2500 

10000 

R.T.C.B.2 

5 
5 
5 
5 

2500 
2500 
2500 
2500 

10000 

2000 
2000 
2000 
2000 

8000 

i 

1 

R.T.e.B.2 

2 
2 
2 
2 

R.T.C.B.  2 

1 

i 

When  ani> 


1867. 

Apr, 


How  Rktiked. 


15 


NoTKS.    i  TEEA8URT  Number.      iBank  Niimber.    ti^Tm"'    '^*'""^^^^-        Mm 


Sent  to  Wa.shington        10       324001  to  324010 

10      !  324051  II  324060 


1  to      10  1     OS 
51  '/      60  i     5s 


50      MutiJate«l 
50 


20       328001  II  328020    4001  /'  4020  |   10?        20<» 


20 


328041  //  328060    4041  n  4060 

1 


10s        200 


500     P.T.(\B.2 


284 


285 


i 


FORM  OP  PROTEST  FOR  NON-PAYMENT. 

Jnited  States  of  Aimerica. 

"SBe  if  ^nown^   That  on  the  day  of 

the  date  hereof  M.  W.  ^.  ^ool,  mm 
guljUF,  ly  authority  of  the  tf^omwottwealttl  Of 
getttt.^ylvattia,  duly  commissioned  and  sworn, 
residing  in  the  City  of  Pittsburgh,  County  of 


^vrRTUET       LIBERTY      U      INDEPENDENCE.^ 

Allegheny,  in  the  said  Commonwealth,  at  the  request  of 

f  1®  tw%m  ilty  lattom'Sl  l^ifc^ 

exhibited,  the  original  .rJ^o^  whereof  a  true  copy  is  on  the  other  side 
written  (the  time  therein  specified  for  its  payment  having  fully  expired), 

t€^€€d€t/ 

whereof  I  duly  notified  the  <=^6a/z€l  u^/  W^iM^^^ 

QShcreicpon  /,  the  said  J^otary,  at  the  request  aforesaid,  Have 
f  t0tej$tcd,  nnd  Do  hereby  solemnly  ^Xt^U^i,  against  the  ,=M€i^t  «W 
^^u/ac^^l  of  the  said  .=Jfo^,  and  all  others  concerned,  for  all  exchange, 
re-exchange,  costs,  damages  and  interests,  suffered  and  to  be  suffered 
for  want  of  ,£^€iy^»»t€^  thereof, 

V^xxs  gone  anb  |rotesicb,  at  Pittsburgh,  the  </9tA  day  of  ,==M€iyy  186^- 


In  Testimony  Wh^reaf ,  I  have  hereunto  set  my 
hand  and  aJI/ixed  my  JVotarial  seal,  t?ie  day 
and  year  above  written, 

W^.   ^.  ^ooA^    Notary  Public 

286 


CITY  COLLECTION  REGISTER, 

CITY  NATIONAL  BANK, 


JANUARY,  1867. 

1.  Notes  and  Bills  received  for  collection  and  payable  in  the  City  are  reu!^tere  1  ni  this 
book.  In  a  limited  business  the  payments  may  pass  direct  into  the  Receiviui:  'i\-l:er*i 
I'ash  Book.  But,  as  the  amounts  never  mature  in  the  same  order  that  they  isre  entered, 
?lie  dates  of  payment  can  be  more  conveniently  brought  into  regular  order  on  the  '■  Pa.^sed 
Collection  Register." 


THE  FOREIGN  COLLECTION  REGISTER 


2.  Records  all  paper  falling  due  out  of  the  City  and  which  has  to  be  forwarded  to  our 
itgent  in  time  for  presentation  on  day  of  maturity.  As  forwarded,  each  is  passed  into  the 
Book  "Notes  and  Bills  Remitted  for  Collection." 


287 


When 
received. 


1M7. 

Jan. 


10 


Mar.       3 


Apr.  '  25 


May     14 


CITY  NOTES  AND  BILLS 


Payer. 


Endoraer. 


Baker  &  Fox 

Joel  Post 

R.  S.  Davis 

J.  B.  Marks 

Ryan  <fe  Dale 

R.  C.  Root,  Anthony  k  Co. 

Baker  &  Hill 

Porter  &  Dick 

W.  G.  Ray 

J.  L.  Dixon 

Day  &  Martin 

W.  Burton 

Jas.  Carver 

Wm.  Beach 

H.  J.  Holmes 

Allen  Park 

A.  B.  Ryan 

J.  W.  Parker 


R.  C.  Root 

J.  W.  Burnham 

R.  Barnes  &  Co. 

Paul  Jones 

Jno.  Taylor  &  Co. 

Wm.  Black 

J.  W.  Burnham 

Bailey  &  Coy 

W  Morris 

Paul  Jones 

G.  A.  Bayard 

Joel  Post 

R.  Lenox 

Harper  &  Brothers 

Barclay,  Hope  &  Co. 


Owner. 


Barclay,  Hope  &  (Jo. 

R.  Irvin  &  Co. 

Jas.  Carver 

Lyon  &  Haven 

1st  Nat.  Bk.  New  Orleans 

1st  Nat.  Bk.  Chicago 


It 


If 


II 


J.  Hardy 
J.  Carter 


R.  C.  Root,  Anthony  &  Uo. 

II  u 

R.  Lenox 

// 
Harper  &  Bros. 
Barclay,  Hope  &  Co. 

II  9 

J.  Carver 


FOREIGN  NOTES  AND  BILLS 


When 
received. 


1867. 
.Lin.     la 


Apr.  j  15 


Mav    14 


Na. 


il 


4 
5 
6 
7 
8 
9 

10 
11 
12 
13 
14 
15 
16 
17 


Drawer. 


1  1  Bates  &  Bell 

2  j  Harper  &  Bros. 

3  I  R.  Irvin  &  Co. 


Wm.  Pagan 

R.  Manly 

R.  Glass  &  Co. 

W.  Payson 

A.  J.  Turner 

C.  H.  Ball 

J.  Home  &  C/O. 

Wm.  Baker 
!  J.  Morton 
1  Roy,  Wade  &  Co. 
1  A.  D.  Walker 
'  Chas.  Page 

J.  Butler 

Myers  &  Hunter 


On  wbom< 


Note 

W.  S.  Hunter 

J.  Kane 

G.  Wilde  &  Co. 
Jas.  Carter 
Note 

// 

u 

n 

n 

II 
J.  C.  Baker  &  Co. 
W.  S.  Haven 
Note 

// 

M 

1 


In  favor  of. 


A.  Stewart  &  Co. 
Harper  &  Bros. 
R.  Irvin  &  Co. 

R.  Lenox 

II 
J.  W.  Burnham 
R.  Dick  &  Co. 
!R.  Lenox 
IWm.  Hood 
Wm.  Lyon 
Wm.  White 
A.  B.  Hunter 
Ourselves 
R.  Weston 
Lyon  &  Haven 
W.  Wattfi 
J.  Post 


Payable  in. 


Pittsburgn 

Chicago 

\  New  Orleans 

.  Montreal 

// 
Pittsburgh 

// 

«f 

H 

II 

Chicago 

New  Orleans 

Pittsburgh 

Chicago 

Pittsburgh 

Chicago 

New  Orleans 


288 


RECEIVED  FOR  COLLECTION. 


No. 


Date. 


Due. 


Amount. 


Memoranda. 


.     1866. 

1 

i 

1867. 

1 

Aug. 

12 

6  months 

Feb. 

15 

1600 

2 

Oct. 

12 

4       // 

15 

2400 

3 

Nov. 

12 

3       // 

15 

1200 

4 

Dec. 

14 

60  days 

• 

15 

2100 

5 

Feb. 

20 

10  ds.  s'gt. 

Mar. 

16 

1200 

6 

26 

10      // 

16 

1600 

7 

11 

3  months 

May 

14 

3600 

8 

Jan. 

11 

4       If 

14 

2100 

9 

Mar. 

12 

60  days 

14 

1200 

10 

9 

1  8  months 

June 

12 

1600 

11 

Feb. 

9 

4       n 

12 1 

i        1100 

12 

Jan. 

9 

5       // 

12 

2400 

13 

Feb. 

9 

4       // 

12! 

1800 

14 

Apr. 

9 

3       // 

July 

12 

900 

15 

Mar. 

9 

4       // 

12 

1200 

16 

9 

4       // 

12 1 

1800 

17 

Apr. 

9 

3      // 

12! 

1800 

18 

Feb. 

9 

5      II 

12 

1500 

Passed  Feb.  15th 


M 

15th 

11 

15th 

II 

15th 

II 

Mar.  16th 

II 

16th 

II 

May  14th 

If 

14th 

n 

14th 

If 

June  12th 

It 

12th 

II 

12th 

If 

12th 

RECEIVED  FOR  COLLECTION. 


Owner. 


Ryan  &  Dale 
Harper  &  Bros. 
R.  Irvin  &  Co. 

R.  Lenox 
R.  Lenox 
R.  Irvin  &  Co. 
Harper  &  Bros. 
R.  Lenox 
W.  B.  Archer 
W.  B.  Archer 
Lyon  &  Haven 
A.  B.  Hunter 
Roy,  Wade  &  Co. 
Roy,  Wade  &  Co. 
Lyon  &  Haven 
A.  B.  Hunter 
Duff  Bros.  &  Co. 


1866. 

Dec. 
Nov. 
Oct. 

1867. 

Feb. 
Jan. 

Mar. 
Feb. 
Jan. 
May 
Apr. 


12 
9 

8 

8 
8 
10 
9 
9 
7 
7 
7 


Time. 


60  days 

3  months 

4  // 

3  // 

4  // 
60  days 

3  months 

4  II 
30  days 
60    // 
60    II 


Due. 


May 

14 

60  ds.  sgt. 

14 

60     // 

Mar.  1  15 

4  months 

15 

4      // 

15 

4      // 

Apr. 

15 

3      // 

1867. 

Feb. 

13 

3600 

12 

i      800 

11 

1600 

May 

11 

2400 

11 

1200 

12 

800 

12 

1200 

12 

1800 

June 

9 

800 

9 

2000 

9 

3000 

Aug. 

27 

2400 

22 

1000 

July 

18 

1500 

i 

18 

800 

18 

1600 

18 

1 

1100 

Amount.       Exchange. 


36 

8 

32 

24 

12 

8 

12 

8 

20 
30 


Net 
PTOceed& 


3564 

792 

1568 

2376 
1188 

792 

1188 

Ret'd 

792 
1980 
2970 


Uemonuida. 


Passed  Feb, 

15 

n 

15 

If 

15 

H      Mav  14 

If 

14 

II 

14 

» 

14 

Protested 

Passed  June  12 

n 

12 

n 

12 

289 


II  (ti 


i|^' 


1 


NOTES  AND  BILLS  EEMITTED  FOR  COLLECTION. 
Iron  City  National  Bank,  Pittsburgh. 


When  sent. 


1867. 

Feb. 
Mar. 
May 


1867. 

Feb. 
Mar. 
May 


1 
1 
1 


1867. 

Jan. 
Feb. 
Mar. 
May 


No. 
1 

10 
6 


1       2 
1       5 

14     11 


Payer. 


1 

7  ! 

8  1 

u 

9  ! 

f 

10  1 

13 

1 

• 

Bates  &  Bell 
E,.  Bruce 
R.  Glass  &  Co. 
W.  Payson 
A.  J.  Turner 
C.  H.  Ball 
J.  Home  &  Co. 
W.  S.  Haven 


Amount. 

1 

When  due. 

'!  1867.   '    ! 

3600 

Feb.   13  ii 

1800 

1 

Mar.  ,12 

800 

May 

12 

1200 

12 

1800 

12 

800 

June   9  i 

2000 

9 

1000 

1 

60  ds. 

sgt. 

Memoranda. 


Passed  Feb.  15 
R.  T.  C.  B.  Mar.  16 
Passed  May  14 

If  14 

Protested 
Passed  June  12 

//  12 


First  National  Bank  of  New  Orleans. 


20 

1 

1 

3 

1 

9 

14 

1 
( 

12 

i 

1 

Gregg  &  Hall 
J.  Kane 
Hay  &  Wood 
J.  C.  Baker  &  Co. 


1 
1 

!  1867. 

1 

2000 

1 

iFeb. 

4 

1600 

111 

2400 

1 

Mar. 

11 

2400 

60  ds. 

1 

sgt 

1 

R.  T.  C.  B.  Feb.  15 
Passed  Feb.  15 
R.  T.  C.  B.  Mar.  16 


First  National  Bank  of  Chicago. 


W.  S.  Hunter 
Patterson  &  Wild 
Wm.  Baker 


800 
1200 
3000 


18OT. 

Feb.  12 

Mar.  il3 

i  June  9 


Passed  Feb.  15 
R.  T.  C.  B.  Mar.  16 
Passed  June  12 


Bank  of  Montreal,  Canada. 


IMT.     I         !i  I 

Apr.     25      4     Geo.  Wilde  &  Co. 
5     Jas.  Carter 


2400 
1200 


186^. 

May 


11 
11 


Passed  May  14 
M  14 


1.  In  onr  Private  Bankers'  Accounts,  pp.  360  and  361,  we  give  another  form  of  this  book.    The  above  is  the  most  convfr 
nient  for  a  large  foreign  collection  business. 

2.  All  paper  remitted  to  our  agents  for  collection  is  entered  upon  this  book. 

3.  After  allowing  sufficient  time  for  the  return  of  the  paper,  we  enter  our  own  in  the  "  Receiving  Teller's  Cash  Book."  and 
Collections  in  the  "  Passed  Collection  Register,"  debiting  at  the  same  time  our  agent  for  the  amount. 

290 


PASSED  CITY  AND  FOREIGN 

COLLECTION    REGISTER 


CITY  NATIONAL  BANK, 


JANUARY,  1867. 


1.  Banks  generally  keep  a  Passed  City  and  a  Passed  Foreign  Collection  Register.  To 
save  space,  we  have  entered  both  on  this  book,  the  use  of  which  is  explained  in  -'City  Col- 
lection Register,"  p.  287.  When  the  business  requires  two  Passed  Collection-  Registers, 
this  form  will  serve  for  both.  Reference  to  the  Receiving  Teller's  Cash  Book  explains  the 
mode  of  posting  them. 

2.  Sight  Drafts  sent  us  for  collection  are  entered  in  this  book  without  passing  through 
"  City  Collection  Register." 


tf 


291 


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CITY    NATIONAL    BANK, 


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05  O  tH 

JANUARY,  1867. 


1.  This  book  records  the  day  of  payment  of  all  the  business  paper  in  the  Bank.  It  is 
made  up  from  the  Discount  Book  and  Collection  Kegisters.  One,  and  sometimes  two  pages 
have  to  be  reserved  for  every  day's  business  in  the  year.  And  in  extensive  business  it  is 
often  convenient  to  have  one  book  for  discounted  paper,  and  another  for  collections,  and 
sometimes  one  for  Foreign  collections.  To  save  room,  we  have  entered  all  in  one  book,  the 
form  of  which  will  serve  for  the  others  when  the  nature  and  extent  of  the  business  require 
them.  Although  a  very  important  book,  it  is,  strictly  speaking,  only  a  memorandum-book, 
from  which  payers  are  notified  of  the  day  upon  which  their  paper  falls  due.  The  Directors 
also  regulate  their  discounts  by  learning  from  it  the  amount  of  discounted  paper  falling  due 
every  day. 

2.  As  paid,  our  own  paper  is  marked  "  Entered/'  or  "  Paid."  Collections  are  marked 
*'  Passed." 


! 


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.  Burton 
s.  Carver 

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m.  Beach 

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i 

DEPOSITORS'  LEDGER. 

CITY  NATIONAL  BANK. 

JANUARY,  1867. 

1.  This  book  contains  no  accounts  but  those  of  Depositors  and  Certificates  of  Deposit. 
We  have  adopted  a  new  form  which  we  think  Banks  will  find  very  convenient  in  business, 
as  it  constantly  shows  the  balance  of  each  account.  The  accounts  are  never  closed  until 
the  depositor  desires  his  Pass  Book  balanced.  His  account  is  then  footed,  and  the  balance 
brought  down  into  the  new  account.     See  Duff  Brothers  &  Co.'s  account,  p.  300. 

2.  The  aggregate  balances  of  this  Ledger  must  agree  with  the  balance  of  the  ••  Deposi- 
tors' "  account  in  the  General  Ledger. 


297 


296 


RICHARD  IRVIN  &  CO. 


JOHN  WARD. 


% 


. ,  \ 


II 


lii^ 


1 1 


18fl7. 

Jan. 


Feb. 


Apr. 
May 
June 


10 


15 


15 
14 
12 


Cash 

Discount  No.  7 
Check 
Cash 
Collection 

w 
Discount  No.  9 
'!  Check 

// 
Collection 
Discount  No.  30 


! 

Checks. 

1 

2400 

! 

i 

j 

2100 

2000 

1 

ROBERT  LENOX. 


|l 

1867. 

Jan. 

10     Cash 

Feb. 

15,      // 

Discount  No.  12 

Checks 

Apr. 

15 

Cash 
Check 

May 

14 

Collections 

June 


Protest  on  No.  8. 
Collections 


2500 

••.100 

2 


Deposits. 


1500 
2967 

1800 
1552 
2400 
2342 


784 
3918 


40 


Balakcb. 


1200 
1400 
1194  20 

3000; 

I 
3528' 

4200 ! 


1294  20 


3194 


20 


6720!  20 
10920  20 


R  C.  ROOT,  ANTHONY  &  CO. 


1867. 

Jan.    10 

Cash 

Feb. 

15 

Discount  No.  13 

1 

Check 

600 

Apr.  15 

'  Cash 

Certified  Check 

1000 

May  14 

Cash 

JunCj  12 

Collection^ 

Checks 

1 

900 

1600 
900 
2089 1 85 

50001 

i 

3000 1 
2700 


3989  85 

7989!  85 
10989  .  85 

! 

12789    85 


If 


Checks 

i.             Deposits.              BALWot. 

1867. 

Jan. 

10 

Cash 

1800 

Feb. 

15 

Checks 

1100 

700 

Mar. 

16 

Discount  No.  17 

2388 

Cash 

1500 

4588 

Apr 

15 

// 

2500 

Check 

2000 

5088 

May 

14 

Discount  No.  22 

1157 

40 

Checks                                                            1 

1400 

4845    40 

June 

12 

// 

1100 

3745    40 

! 
1 

HARRIET  LENOX. 


1867. 

Jan. 

10 

Cash 

Feb. 

15 

Check 

Mar. 

16 

Cash 

Apr. 

15 

Check 

May 

14 

Cash 
Check 

June 

12 

Cash 
Check 

HARPER  &  BROTHERS. 


299 


400 
1600 

2800 

3200 

3700 


1867. 

* 

i 

Jan. 

10 

Cash 

Discount  No.  1 
Check 

1800 

2000 
1951 

67 

i 
2151    67 

Feb. 

15 

Cash 

Collection 

Check 

2000 

2500 

784 

! 
3435    67 

Apr. 

15 

Cash 

5700 

9135    67 

May 

14 

Collection                                    * 
Checks 

900 

1176 

9411    67 

June 

12 

Discount  No.  26 

587  70 

9999    37 

298 


I 


11 


It     I 


lit  r 


3 


DUFF  BROTHERS  &  CO. 


RYAN  &  DALE. 


1867. 

Jan.   10 
Feb.   15 


Mar.  16 

Apr.  15 

May   14 
June  '12 


Cash 

II 
Discount  No.  11 
Check 

Discount  No.  16 
Checks 
Cash 

Certified  Check 
Cash 

// 
Checks 
,".   ;:C0 


Deposits. 


Balance. 


1000 
1000 
3284  05 


June  30     Balance 


1100 

895  50 

2200 

6500 

800 

1 

1 

2000 
2100 

500 

^12170 

55^1 

16779 

55  16779  55 

12179  55 

4184  i  05 


2879 


55 


8579  55 
10579  55 

I 

12179  55 


BARCLAY,  HOPE  &  CO. 


1867. 

Jan.   10     Cash 

,         Discount  No.  3 

Check 
Feb.  15     Collection 
Mar.  16     Cash 

Check 
May   14     Discount  No.  23 
June  12  //  «     29 


1500 


1100 


800  ! 
1789  20 

1600 
1400 

783  60 
1164  40 


JAMES  CARVER. 


1807. 

Jan.    10     Cash 

Discount  No.  4 
Feb.   15     Collection 

Checks 
Mar.  ,16         // 
Apr.  15    Discount  No.  18 

Cash 
May  ,14    Checks 


1089  20 
2689  20 


2989  20 
8772  180 
4937  120 


600 

1590 

40 

2190 

40 

1200 

2090 

40 

90 

40 

2376 

80 

2100 

4567 

20 

1 

4067 

20 

18G7.  I 

Jan.   10     Cash 

Discount  No.  2 
Feb.  15    Collection 

Checks 
Mar.  16         « 
Apr.  1 15    Discount  No.  21 
May  1 14    Checks 


1867, 

Jan 


10    Discount  No.  5 
Check 
Feb.    15     Discount  No.  8 

Checks 
Apr.  15  ,  Discount  No.  20 

'  Cash 
June  12     Collections 
Checks 


/•* 


*. 


1867. 

Jan.   10    Discount  No.  6 

Check 
IJeb.   15     Collection 

I  Checks 

Apr.  15    Discount  No.  19 

Cash 
May  14    Discount  No.  24 

I      jj  Protest  on  No.  19 
June'  12 '  Cash 

Collection 


Checks 

1)EP08IT 

i. 

Bal\m:e. 

■i 

800 

t 

994 

1794 

3528 

800 

,522 

2500 

-022 

1791  30 

3x13  30 

1400 

2413  30 

i 

W.  B.  ARCHER. 


1000 
3000 


1200 


LYON  &  HAVEN. 


1200 
2500 


1175 

60 

175 

60 

3582 

60 

758 

20 

1492  75 

0000 

12250 

95 

2744 

13794 

95 

1491 
2100 


291 


1  75 


1592  27 

4350     5833  27 

2367  20 

8198  72 
1300 
2940    12438  72 


The  red  figures  Indicate  the  balance  overdrawn. 

301 


A.  B.  HUNTER. 


18C7. 

Feb.   15  Cash 

Mar.  16  Discount  No.  14 

I  Cash 

I  Checks 

Apr.  15  Certified  Check 

June  12  Discount  No.  28 
Cash 


CflKCKa 

. 

Deposits. 

1 

400 

' 

1492 
1100 

50 

300 

1000 

1774 

80 

1200 

1  1 

1 

,  i 

Balance. 


2692 
1692 

4667 


50 
50 

30 


GENERAL   LEDGER, 


ROY,  WADE  &  CO. 


h  '  i 


1867. 

Feb.  15    Discount  No.  10 

I      11  Check 
Mar.  16     Checks 
Apr.  15    Cash 
,  May   14    Discount  No.  24 


1774 

50 

1000 

774    ; 

1000 

3700 

3474  1 

V 

1 

1754 

10 

! 

5228 

50 


J.  W.  BURNHAM. 


1867. 

« 

Mar.  16 

Discount  No.  15 

2388 

Cash 

1600 

Checks 

1200 

2788 

Apr. 

15 

'Cash 

1950 

4738 

June 

12 

t 

Discount  No.  27 

1 

1 

1569 

87 

6307 

1 

87 

CITY   NATIONAL   BANK 


JANUARY,  1867. 


1.  This  book,  like  the  Ledger  in  any  other  business,  is  the  book  which  exhibits  all  the 
results  of  the  business.  In  the  present  instance  it  is  made  up  exclusively  from  the  Journal. 
In  a  business  in  which  that  book  is  dispensed  with,  the  Ledger  is  made  up  from  the  Gene- 
ral Cash  Book,  as  in  our  Private  Banker's  Books.  But,  as  we  stated,  notes  pp.  261  and 
269,  we  have  arranged  the  Receiving  and  Paying  Tellers'  Cash  Books  so  as  to  admit  of 
direct  posting  to  this  Ledger,  When  that  mode  of  keeping  the  books  is  adopted,  these 
two  books  will  be  auxiliaries  to  the  Deposit  and  the  General  Ledger. 

2.  From  this  book  the  monthly  and  semi-annual  statements  are  made  out. 

3.  Havitig  given  indexes  to  all  the  Ledgers  in  the  first  three  parts  of  this  work,  we  omit 
them  in  the  fourth  part. 

4.  The  Taxes  on  the  profits,  circulation,  and  deposits  of  the  Bank,  being  payable  in  July 
and  January,  could  not  be  practically  exhibited  here. 

5.  Before  closing,  a  Trial  Balance  must  be  taken.  We  have  made  the  closing  entries  on 
the  face  of  the  Ledger.  Those  who  prefer  journalizing  them  can  do  as  we  have  done  with 
our  Rail  Road  accounts,  pp.  334  and  335. 


CERTIFICATES  OP  DEPOSIT. 


1867. 

Apr.  15    R.  P.  Duff, 
I       I  H.  P.  Ford, 
May   14  !  G.  R.  Duncan, 
June  12  '  R.  P.  Duff, 

j  G.  R.  Duncan, 


No.  1 
2 
3 
1 
8 


2100 
1200 

2100 
2400 
1200 

4500 
5700 

2400 

• 

303 


302 


I! 


i<  I 


1 

i 


Dr. 


CAPITAL 


STOCK. 


Ck. 


June  ''^0    I>uIanco 


o 


31 


1866. 

1867. 
Jan.   1( 


Cash 


June  30  Balance 


1  300000 { 

300000' 
600000 

600000^ 


CASH 


ACCOUNT. 


isee. 

1 

Dec. 

31 

1867. 

Jan. 

101 

Sundries 

Capital  Stock 

Sundries 

Circulation 

Feb.  1 15*  Sundries 

Mar  i  16|        // 

Apr.  1 15|         // 

May  14|        // 

June  12         '/ 


June  30'  Balance 


300038    50 

300000; 

15300 
160000 
261200 
117400 
101633    34 

89896 

43308    44 


1866. 
Dec. 

1867. 

Jan. 


31 
10 


Expense 
Sundries 


1388776   28 


603847    54 


U.  S.  Bonds 
Feb.    15^  Sundries 
Mar.  16         tf 
Apr.    15         " 

M!ay  '14|    « 
June !  12|    w 

,;:;0.  r::::i::cc 


200 


1,  200600 
1 1   56066  66 
l'  300000, 

1  126600 ' 

2  39033 ;  33 

2  33265 

3  12903  75 
|3i  16260: 

f.  5  J  rC'V'M"^  1  54 

1388776  28 


UNITED  STATES 


BONDS. 


18CT. 

Jan.   10  Cash 

// 
Feb.  15     'f 


June  30  Balance 


200000 
300000 
100000 

600000 


600000 


1M7. 


Halanco 


GOOOGO 


600000 


304 


I 


' 


Dr. 


DEPOSITORS. 


Cr. 


1867. 

Jon. 

10 

Cash 

Feb. 

15 

// 

Mar. 

16 

II 

Apr. 

15 

II 

May 

14     // 

June 

12     // 

30 

Balarue 

' 

: 

T  "" 

1867. 

i 

i 

1 

7900 

Jan. 

10 

Cash 

1 

12300 

1 

18600 

, 

Bills  Discounted 

1 

11958 

87 

te 

10300 

Feb. 

15 

Cash 

1 

21164 

» 

8500 

Bills  Discounted 

2 

14267 

60 

3 

4903 

75 

Mar. 

16 

Cash 

2 

6800 

3^ 

,     8300 

Bills  Discounted 

2 

7164 

5 

1. 

'.ii ; 

1 

Apr. 

15 

Cash 

Bills  Discounted 

2 
2   I 

51100 
7253 

12 

jMay 

14 

Cash 

Bills  Discounted 

3 
3 

12788 
6062 

30 

f 

f 

June 

12 

Cash 

3 

18984 

1 

66 

June  30 

> 

! 

Bills  Discounted 

8 

9014 
178856 

77 

i 

178856 

66 

i 

1 
1 

Balance 

120352 

91 

FOREIGN  BILLS 


OP  EXCHANGE. 


1867. 

Jan.  10  Cash, 

Mar.  16     // 

Apr.  15     II 

June  12     II 


No 


.A 

2  2 

3  2 

4  3 


III 


1867. 


44444    44     Jan.    12  Baring  Bros.  &  Co.  No. 
22222    22     iMar.  16  //  2  2 


,..1 


20000 
2000 


Apr.   15 
June  12 


88666    66 


3  % 

4  3 


BILLS 


DISCOUNTED. 


- 

V 

1867. 

Jan. 

10 

Sundries 

Feb. 

15 

n 

Mar. 

16 

II 

Apr. 

15 

II 

May 

14 

II 

June 

12 

II 

June  30  Balance 


BANE 


FURNITURE. 


1867. 

Jan.     10  Cash 


U 


305 


44444  44 
22222  22 

20000 
2000 

88666  66 


\            \ 

I       12100 

1  14400 

2  7200 

2  7300 

3  6200 

1 

1867. 

Teb.   15 

Mar.  16 

Apr.  15 

iMay  14 
Jiine  ,30 

Cash 

// 
// 

Balance 

t 
1 

2 
2 
3 

1 

7900 

18600 

7200 

5700 

8        9200    i 
56400 

i 
i 



56400 

i   17000 

i                1       i 

' 

I ; 


H 


I 


i:' 

III 


::i. 


S     Br. 


DISCOUNT 


ft 


INTEREST.         Cr. 


1867. 

June  130  Profit  &  Loss 


'  1808.   I      I 

18724   78     Dec.   31  Cash 

ill  1867.  j 

IjJan.  10  Bills  Discounted 

Feb.   15     //  " 


18724   78 


Mar.  il6 
Apr.  15 
May   14 


//  n 

Cash 

Bills  Discounted 
June  12   Cash 

Bills  Discounted 


1 

38 

50 

1 

89 

13 

2 

66 

40 

2 

36 

2 

34 

88 

3 

18000 

3 

87 

70 

3 

204 

94 

3 

167 

23 

18724 

78 

EXPENSE 


ACCOUNT. 


1866. 

Dec    31  Cash 

18«7. 

Apr.    15     If 


1 

2 


200 

2975 
3175 


1867. 

June  30  Profit  &  Loss 


f  5 


EXCHANGE 


ACCOUNT. 


18W. 

Jan. 

10 

Cash 

1 

Feb. 

15 

II 

1 

Mar. 

16 

n 

2 

Apr. 

15 

If 

2 

May 

14 

II 

8 

June 

12 

II 

3 

30 

Profit  &  Los^               f 

5 

I    1867.  \- 

2222    22  •  Jan.    10  Bills  Discounted 
116  Feb.   15  Cash 

1189    11  Bills  Discounted 

1290  Apr.  15   Cash 

62  Bills  Discounted 

218  May  14  Cash 

4131    34  Bills  Discounted 

;  June  12   Cash 

Bills  Discounted 


9228    67 


!i 


CIRCULATION 


ACCOUNT. 


1867. 

Apr.    15  Cash 

June 


11 


s 


500 

47'.'r»0O 


480000 


1867.  '      ! 
Jan.    10  Cash 

•  Feb.   15     // 

•  Mar.  16;     '/ 


June  30  Balance 


306 


3175 


3175 


1 

52 

1 

136 

2 

66 

2 

2666 

2 

12 

3 

4112 

3 

50 

3 

2116 

3 

18 

67 


9228  !  67 


1     160000 

1  232000 

2  88000 

480000  , 


479500  I 


Dr. 


IRON  CITY 


(Pittsburgh.)  NATIONAL  BANK.    Cr.    4 


isr.T. 

Feb.  15  Cash 

Mar.  10  // 

May  14  n 

June  12  '/ 


June 


30  Balance 


1867. 

i 

3564          I  Jan.    10 

Casii 

2 

1782            Mar    16 

II 

3 

1980          lApr.   15 

II 

3 

2772            May   14 

Protest 

1 

i 

.JUllC  /M> 

Kaiancc 

10098 

1 

1 

! 

1 
1 

5896 

1 

1 

1000 

2 

1200 

2 

2000 

3 

2 

FIRST  NATIONAL       (ChicagoO 


BANK. 


1867. 

Jan.  10  Cash 

Feb.  15  II 

Mar.  16  // 

June  12  // 


1 
1 
2 
3 


500 

792 
1188 
2970 


fi    1867. 

!  Jan.  10   Cash 

,j  Mar.  16       n 

jjApr.  15       II 

May  14      n 


1 
2 
2 
3 


;;it 

r.alanco 

i" 

14000 

June  30  Balance 


FIRST  NATIONAL    (New  Orleans.) 


BANK 


1867.   ■      i 
Jan.     10  Cash 
Feb.    15      " 
Mar.    16       '/ 

Jur.c    ;)0    Ualancc 


1 
1 

2 


1000 
3528 
2352 

9700 


1867. 

Jan.  10  Cash 

Mar.  16  " 

Apr.  15  N 


1 
2 

2 


June  30  Balance 


BARING 


(London.) 


BROS.  &  CO. 


1867. 


1867. 


Jan.    12  Foreign  Bill,      No.  1     1       44444  44     Apr.   15   Cash, 

Mar.    16         u         n  2     2       22222  22  |  May    14 

Apr.    15         //         //  3     2       20000 

June   12,       w         //  4     3         2000 

88666  66 

i       1996  49 


jAne  30  BalanqiB 


No.  1  2 

2  3 

June  12      '/        for  No.  3  refd.  3 

oO    Halaucc  1' 


BANK  OP 


(Montreal,  Canada.) 


MONTREAL. 


1867. 

May    14  Cadi 


3 

3564 

FIRST  NATIONAL 

(Boston.)                   B- 

1867.    i 
May    14 

Cash 

1 
3 

2394 

1867.    1      1 
May   14  Cash 

i 

ao7 

BANK 


10098 


1500 
1600 
4000 
6900 

14000 

8550 


50U 
1200 
8000 

9700 

2820 


I 


26666  67 
40000 
20003  50 

•n 

88666  66 


2394 


r^^ 


I 


!  i 


^ 


ii 


'•M 


R..i 


11  •• 
1 1 
I 

I. 


B-^^ 


II     Dr. 


PROFIT 


& 


LOSS. 


Cr. 


1867. 

June   30   Expense 

,       Dividend  No.  1 
Surplus  Capital 


i  il 

fl3  3175 
5  18000 
5         3681    12 

24856    12 


1867. 

June  12  Cash  3 

30  Discount  &  Interest  f   3 

Exchange  3 


l! 


2000 

18724  78 

4131  34 

24856  12 


DIVIDEND 


No.  L 


SURPLUS 


CAPITAL. 


1! 

1867. 

• 

1 

June  30 

> 

i 

■ 

1 

f   5 


BALANCE 


ACCOUNT. 


ISflT. 
June   3(   Cash 

U.  S.  Bonds 
!     j  Bills  Discounted 
Bank  Furniture 
,  Bank  of  Montreal 
I  Baring  Bros.  &  Co. 
Iron  City  Nat.  Bai^ 


T 


1867. 


I      I 


f   1     603847    54     June  30  Capital  Stock 


1  600000 
2,1    17000 

2  600 
4        3564 

4        1996    49 
4        5896 

1232904    03 


Depositors 

Circulation 

1st  Nat.  Bk.  N.  Orleans  4 

1st  Nat.  Bk.  Chicago  4 

Dividend  No.  1  1 5 

Surplus  Capital  6 


f   5       18000 


3681    12 


f   1     600000 

2  120352    91 

3  479500 
2820 
8550 

18000 
3681    12 


1232904   03 


DIVIDEND  BOOK,  CITY  NATIONAL  BANK 

Diyidend  UTo.  1,  Three  per  cent.,  declared  June  30,  1867. 


Archer,  W.  B. 
Baker,  J.  C. 
Barclay,  Hope  &  Co. 
Banks,  Robert 
Cox,  J.  W. 
Comptou,  J.  R,. 
Duff,  Wm.  H. 
Duff,  P. 

Duncan,  Geo.  R. 
Harper,  James 
Hay,  Wm. 

Irvin,  Richard.  &  Co. 
Lenox,  Harriet 
Lenox,  Robert 
Mitchell,  Thos. 
Major,  Wm. 
Root,  R.  C. 
Smith,  T.  B. 
Ward,  John 
Warren,  Samuel 


2000 
100 
300 
600 
100 

20 
100 
100 

30 


Amount. 

6000 

300 

900 

1800 

300 

60 

300 

300 

90 


Bate. 


Beceived  Paymeui. 


600 

1800 

1 

200 

600 

100 

300 

50 

150 

100 

300 

600 

1500 

300 

900 

100 

300 

100 

300 

1 

1 

500 

1500 

100 

300 

6000      18000 


1.  When  a  stockholder  calls  for  his  dividend,  the  book-keeper  fills  a  check  for  th« 
amount,  as  follows : — 


Eity  Hatitaal  Saak, 


eatei. 


a/u   {m^iVliamrh  ^.  -fiTolzeT,  Esq.,  &t 
!«  Bix  QClioubscundL ' .„ Woiia 


"/ 


d  cha\ 


•iae 


eooo.f^ 


'.  J.  (Pob'r'keT, 

General  Book-keeper. 


308 


The  date  is  then  inserted  in  the  'Mate"  column  above,  and  the  drawer  of  the  dividend  in- 
serts his  signature  in  the  '^  Received  Payment"  column,  opposite  the  amount  of  his  dividend. 

2.  Dividend  Checks  are  charged  to  the  Dividend  Account,  in  the  same  manner  that  De- 
positors' Checks  are  charged  to  individuals.  When  all  the  dividends  are  paid,  "Dividend 
No.  1,"  in  the  Ledger,  will  be  balanced. 

309 


Y 


I 


M 


n 


H:l 


'1 


!M 


a> 


CO 


II 


o 
o 
o 
o 
o 


(M 

CO 

o 

(M 


o 

CO 


o 

o 

T-+ 

lO 

o 

30 

la 

o 

•r> 

GO 

QO 

70 

O 

:3^ 

o 

o 

lO 

Od 

o 

09 

CO 

Od 

-* 

1-4 
1— 

n 

aa 

< 


"^ 

I 

-* 

kO 

la 

o 

h- 

O 

b- 

o 

o 

^ 

o 

Tj+ 

o 

o 

CXD 

o 

QO 

o 

o 

CO 

o 

CO 

o 

<M 

<M 

CO 

o 

Tt« 

'^ 

»-» 

CO 

«» 

«» 

I 
I 


OS 

43 


no 

d 

o 


a 
o 

OQ 


cc     J2 


f-) 

fl 
u 

a 

e3 


fl 

o 


o 


e3 

fl 

O 


3     =^     -^ 


C4H 

o 

M 

fl 


o 


^ 


fl 


OQ 

(U 

rfl 

o 

■73 

fl 

en 
o 


t)    pq    pq    M    pq    ^q    :z; 


o 
310 


o 

OQ 

<s> 
u 

H 


o 

fl 

o 

% 


STANDING   LEDGER. 

KICHAKD   IRVm  &  CO. 


Date. 


Payable  by. 


1866. 

Dec.   14    J.  W.  Loring 
Oct.      8'  Hay  &  Wood 

1867. 

June  10   K.  Banks 


'A  o  A.S 

discounter.       ^^  VM^t^-        endorser. 


3000 
2400 


Due. 


M**" 


4000 


1867. 

Mar.  17    Paid 
,11      H 

Oct.    13 


LYON  &  HAVEN. 


1866, 


Dec.  14   Bateman  &  Hill 

1867.  " 

Feb.   11    J.  Morton 
lull  J.  Kane 


1200 


1867. 

Feb.   15   Paid 


If 


Mar.  16 

May   14    Protested 


1  Some  call  this  the  "Blue  Book."  The  form  and  two  illustrations  which  we  give  will  fully  ex- 
plain its  use  and  importance  to  the  President  and  Directors.  In  business  it  is  indexed,  which  enables 
them  to  refer  to  it  and  see  at  once  what  every  borrower  is  liable  for  as  promisor  or  endorser. 

2.  The  entries  are  made  from  the  Discount  Book  as  the  notes  are  entered  on  that  book. 


REGISTER   OF   STOCKS. 


Purchased. 


Due. 


Description. 


1867.    I  1881. 

Jan'y.l  2     Feb. 


1881. 


25 


Jan*y. 


1881. 


Feb. 


10    Feb*    25    300  Bonds  U.S.  5/20s  of  $1000 

each,  4th  Series,  Nos.  20001  to 
20300 


15 


1881. 

Feb. 


25  :  100  Bonds  U.S.  5/20s  of  $1000 
each,  4th  Series,  Nos.  30001 
to  30100 


Amount. 


100  Bonds  U.S.  5/20s  of  $1000  ) 
each,  3d  Series,  Nos.  19001  to  \ 
19100  ) 


Jan'v     2    Feb.  25    100  Bonds  U.S.  5/20s  of  $1000 ) 
^'       '  each,  4th  Series,  Nos.  1201  to  [ 

1300  ) 


Interest  is 
due. 


May  1 

and 
Nov.  1 


May  1 

and 
Nov.  1 


May  1 

and 

Nov.  1 


May  1 

and 

Nov.  1 


Remarka. 


This  book  records  all  stocks  and  bonds  the  property  of  the  bank,  and  when  the  interest  is  payable. 

311 


1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 
10. 
11. 

12 

13. 
14. 
15. 

16. 

17. 

18. 

19. 

20. 

21. 

22. 

23. 

24 

25. 

26. 

27. 

28. 
29. 
30. 
31. 
32. 
33. 
34. 

35. 
36. 


QUESTIONS  FOR  EXAMINATION  ON  NATIONAL  BANK  ACCOUNTS. 

When  is  the  General  Cash  Book  a  book  of  original  entry?  (N.  1,  p.  247.) 
What  is  it  made  up  from?  (N.  1,  p.  247.) 
What  should  its  balance  agree  with  ?  (N.  1,  p.  247.) 
Do  banks  generally  keep  adjournal  ?  (N.  1,  p.  253.) 

When  it  is  kept,  what  book  receives  all  its  entries  from  it?  (N.  1,  p.  253.) 
What  does  the  Stock  Ledger  record  ?  (N.  1,  p.  257.) 
Where  are  its  entries  first  obtained?  (N.  1,  p.  257.)     - 
Upon  what  book  are  the  transfer  entries  first  recorded?  (N.  1,  p.  257.; 
What  must  the  aggregate  credits  of  the  Stock  Ledger  agree  with  ?  (N.  2,  p.  257.) 
Why  are  its  accounts  kept  in  alphabetical  order?  (N.  3,  p.  257.) 
Where  do  the  amounts  of  the  Receiving  Teller's  Cash  Book  pass  when  a  General  Cash 
Book  is  kept?  (N.  1,  p.  261.)  ^ 

When  no  General  Cash  Book  or  Journal  is  kept,  where  are  the  contents  of  this  book 

posted?  (N.  1,  p.  261.) 
What  is  the  use  of  the  Signature  Book  ?  (N.  1,  p.  268.) 
Who  should  witness  the  signatures?  (N.  1,  p.  268.) 
Where  is  the  balance  of  Cash  on  hand  found  when  no  General  Cash  Book  is  kent  ? 

(N.  1,  p.  269.)  ^ 

How  can  a  Certificate  of  Deposit  be  negotiated?  (N.  1,  p.  274.) 
What  is  the  use  of  the  Ofi"ering  Book  ?  (N.  1,  p.  275.) 
Where  are  the  Accepted  Notes  and  Bills  entered?  (N.  1,  p.  275.) 
What  is  done  with  Rejected  Notes  and  Bills?  (N.  1,  p.  275.) 
What  is  done  with  Discounted  Paper  when  protested?  (N.  1,  p.  278.) 
What  is  done  with  Protested  Collection  Paper  ?  (N.  2,  p.  282.) 
Where  do  we  enter  all  paper  remitted  for  collection  ?  (N.  2,  p.  290.) 
Where  do  we  enter  Discounted  Paper  when  collected  ?  (N.  3,  p.  290.) 
Where  do  we  enter  collections  when  paid  ?  (N.  3,  p.  290.) 
What  do  we  record  in  the  Foreign  Bill  Book  ?  (N.  1,  p.  280.) 

Why  not  enter  them  on  the  Discount  Book,  as  we  do  all  other  paper  belono-ine  to  the 
bank  ?  (N.  1,  p.  280.)  ^  ^  ""    ^ 

Where  are  all  Notes  and  Bills  entered  when  received  for  collection  ?  TN.  1   and  2 

p.  287.)  ^ 

What  is  t^e  Tickler  used  for?  (N.  1,  p.  293.) 
What  accounts  are  kept  in  the  Depositors'  Ledger?  (N.  1,  p.  297  ) 
When  are  they  closed  ?  (N.  1,  p.  297.) 

What  must  the  aggregate  balances  of  this  Ledger  agree  with  ?  (N.  2,  p.  297.) 
How  are  overdrawn  balances  indicated?  (N.  1,  p.  301.) 
What  Ledger  exhibits  the  results  of  the  business?  (N.  1,  p.  303.) 
What  book  are  the  Monthly  and   Semi-monthly  Statements  made  from  ?  (N   2   n 
303.)  V    •     .'  F 

What  account  do  we  debit  for  the  Dividend  Checks  ?  (N.  2,  p.  309.) 

How  will  the  account  ''Dividend  No.  1"  stand  when  all  are  paid ?  (N.  2,  p.  309.) 


DUFF'S  BOOK-KEEPING. 


RAIL   ROAD   ACCOUISTS. 


JANUARY.  1867. 


313 


312 


'■A 


EEMARKS. 

V 

The  following  set  of  Rail  Road  accounts  illustrates  in  a  condensed  form  the  construction 
and  equipment^of  the  road,  the  commencement  of  its  operations,  and  the  declaration  of  the 
first  dividend.  Part  of  the  earnings  are  carried  to  credit  of  the  Stock,  part  to  the  DiYi- 
BEND,  and  part  to  the  Surplus  Capital. 

The  forms  of  Manifests,  Bills  of  Lading,  &c.  are  among  the  best  in  use  j  but  Rail  Road 
and  Express  Companies  vary  all  these  forms  to  adapt  them  to  changes  in  business.. 


i: 


314 


KAIL  EOAD  ACCOUNTS. 

CONSTRUCTION  AND  EQUIPMENT  DAY  BOOK. 

PENNSYLVANIA  RAIL  ROAD, 

JANUARY,  1867. 

1.  This  book  is  ruled  with  a  date  and  voucher  column  on  the  left:  the  next  two  are  for 
the  titles  cif  the  account  and  the  items  of  expenditure.  To  the  right  of  these  are  eleven 
money  columns,  each  of  which  has  its  representative  account  in  the  General  Ledger. 
Compare  and  see. 

2.  The  figures  in  the  Voucher  column  are  the  numbers  which  are  endorsed  upon  them  as 
they  are  filed  away  for  future  reference. 

3.  When  the  footings  are  brought  forward  to  the  end  of  the  month,  bring  them  under 
the  amount  in  the  Depot  column  on  the  left.  From  the  aggregate  footing  make  the  Jour- 
nal entry.     See  Journal  entry  of  January  31. 

4.  The  Incidentals  should  be  designated  '^  Construction  Incidentals,"  in  the  Journal,  as 
there  is  another  account  of  the  same  name  in  Operating  Expenditures. 

5.  The  entries  in  this  book  are  made  from  the  vouchers,  and  are,  as  the  Journal  entrj 
indicates,  cash  payments. 


» 


315 


h 


CONSTEUCTION  AND  EQUIPMENT, 


11 


s 

Date 

"1        What  Aeeoiut. 

1866. 

Jan. 

4    1  Surveying 

Pd 

8    2  Land 

// 

9    3  Incidental  Exps. 

II 

12    4  Grading 

II 

14    5  Depots 

II 

15    6  Road  Building 

II 

16    7  Bridging 

" 

18    8  Tunneling 

II 

19    9  Locomotives 

II 

1               do. 

II 

10  Cars 

II 

21  11  Fencing 

II 

12  Incidental  Exps. 

II 

13             do. 

II 

14  Fencing 

// 

15  Cars 

// 

1  16  Depots 

// 

22  17  Road  Building 

// 

18  Lands 

// 

19  Surveying 

II 

20  Bridging 

II 

21  Depots 

II 

22  Grading 


23  Incidental  Exps. 

24  24  Bridging 

25  Tunneling 

26  Grading 

27  Locomotives 

28  Surveying 

29  Cars 

30  Lands 

31  Road  Building 

32  Fencing 

II 

33  Depots 

n 

26  34  Incidental  Exps. 

II 

35             do. 

II 

36  Depots 

II 

37  Cars 


For  what  paid. 


,  E.  H.  Heastings  1  rao.'s  Salary  to  Jan.  1st 
J.  Cartwright,  for  Right  of  Way,  per  Deed  M'ch  4,  1866 
W.  S.  Haven,  for  Blank  Books 

Jacob  Ring,  Excavating  21000  vds.  @  10^  $21' )0 

Less  20%  retained         420 

Passal  and  Hay,  building  Freight  Depot  at  Harrisburg 

Knap,  Ward  &  Co.,  for  R.R.  Iron 

Carpenter  &  Co.,  Bridging  Wood  Run,  per  Contract 

Hall  &  Oxley,  for  Tunneling  Bills  Hill,   //  " 

Pillow  &  Lens,  for  Locomotive  and  Tender  "Locomotive" 

//  II        II  II  It         II       "Driver" 

Kirk  &  Rhodes,  for  5  Freight  Cars,  @  $500  each 
Burns  &  Shell,  for  Fencing  350  Rods,  @  $1.00 
H.  Greeley,  for  Advertising 
J.G.Bennett,  " 

G.  Wood,  for  Fencing  160  Rods,  @  $1.00 
Kirk  and  Rhodes,  for  3  Passenger  Cars,  at  $2000  each 
J.  Burchinell,  for  Freight  and  Passenger  Depot  at  Altoona, 

per  Contract 
R.  Driver,  Laborers'  Pay-Roll  for  Dec.  1866 
Adam  Oaks,  for  40  Acres,  per  Deed  Jan.  14,  1867 
W.  Maxwell's  Traveling  Expenses 
Oliver  Birch,  for  9000  ft.  Oak  Lumber,  @  20/ 
Boyd  &  Murdoch,  for  Freight  Depots  at  Pittsburgh,  per 

Contract 
Excavating  on  Section  14,  4000  yds.,  @  10 
n  II      15,3000    II     @20 

n  II      16,2500    //      @20 


$400 
600 
500 

$1500 
300 


Less  20%  retained, 

Telegraphing  for  one  month 
F.  Freeman,  Bridging  Red  Run,  Sec.  31 

Piper  &  Wood,  Tunneling  Coal  Hill,      '/    27 
Murphv  &  Hill,  Grading  Roads  Hill,      //    21 
Sterling  &  Brown,  for  Locomotive  and  Tender  "Velocity" 
J.  Camp,  4  mos.'  Salary  to  date 

Painter  &  Carpenter,  for  2  Pass.  Cars,  @  $2200,  per  Contract 
R.  Stone,  for  Right  of  Way  ,100  ft.wide,  per  Deed  Jan.  23,1867 
Freight  &  Duty  on  R.R.  Iron  received  per  Ship  from  Li- 
verpool 
Samuel  Graves,  for  1600  Rods,  @  75/ 
J.  &  A.  Patterson,  for  Building  Depot  at  Pittsburgh,  per 

Contract 
W.  S.  Haven,  for  Binding  and  Stationery 
Daiiv  Commercial,  for  Advertising  to  date 
Carpenter  &  Co.,  for  Building  New  Office  at  Pittsbrrgh  Pas- 
senger Depot 
Kirk  &  Rhodes,  6  Cars,  @  $400,  per  Contract 

Amounts  carried  forward 


JANUARY,  1867. 


Depoti. 


Road  Building.       Lands.       Surveying.       Grading.        Bridging.       Tunnelling.     locomotiTcs.         Can.         Fencing.     Iici4eital 


100 


700 


130 


1680 


6000 


4400 


1300 


3800 


7000 
7000 


2500 


7600 


1500 


9400 


800 


350 


160 


40 
35 


6000 


80 


1800 


1200 


170 


4900 


(S3 


4400 


80 


6600 


3100 


1300 


270 


850 


4400 


1200 


330 
70 


24570 


9000 


2350    260 


3050 


8000 


2400 
8200    20600    15300   1710 


670 


316 


317 


9 


CONSTRUCTION  AND  EQUIPMENT, 


Date.      *»        Wkt  Account. 


/ 


For  what  paid. 


1867. 

Jan.  2G 


111  , 


38  Lands 

39  Bridging 

40  do. 

41  Grading 


42  Lands 

28  43     do. 

44  Road  Building 

45  Incidental  Exps. 

46  do. 

47  Surveying 

48  do. 

49  Lands 

31  50  Road  Building 
51         do. 
52i  Grading 

53  Bridging 

54  Locomotives 

55  Cars 

56  Incidental  Exps. 

57  do. 

58  Fencing 

59  Depots 

60  Surveying 


fi 
n 


Amounts  bro't  forward, 
Pd.  J.  Banks,  for  Procuring  Right  of  Way 
1/    Hiram  Hill,  for  Material  delivered  on  Soc.  1 
\V.  Stone,  for  Bridging  "        1 

R.  Baker  &  Sons,  Excavating,  as  follows,— viz. : 

31000  yds.  on  Sec.  18,  19,  20,  @  lOf-  $3100 

1500     /'  /'      18, 19,  20,  @  20/  300 

3400 

Less  20%  retained  680 

R.  Banks,  for  Right  of  Way  100  feet  wide,  per  Deed  MayT,' 

1866. 
Commission  of  Appraisement,  for  services 
for  Switch  Ties,  80,  @  20 
J.  K.  Smith,  1  mo.'s  Salary  to  date 
R.  Roberts,    1     if        do.  do. 

W.  Morris,    3     "        do.  do. 

R.  Manley,    3     w        do.  do. 

J.  Wood,  Right  of  Way  100  ft.  wide,  per  Deed  May  7 

1866 
Freight  and  Duties  on  R.R.  Iron  from  Liverpool 
Driver's  Pay-RoU  for  Jan. 
A.  Wood,  Grading  Farmer's  Hill 
D.  Haven,  for  Bridging  Wood  Creek 
Archer  &  Co.,  for  Locomotive  and  Tender  "Ajax" 
Kirk  &  Rhodes,  6  Passenger  Cars,  @  $2200 
Team  Hire  this  month 
"Morning  Post"  for  Notice  to  Stockholders 
Robert  Hall,  for  1600  Rods,  0  $1.00 
Carpenter  &  Co.,  for  Building  Freight  Depot  at  Pittsburgh 
R.  Patterson,  Horse  Hire 

Total  amount  pd.  for  Depots 

//  Road  Building 

»  Lands 

If  Surveying 

V  Grading 

IT  Bridging 

0  Tunneling 

»  Locomotives 


JANUARY,  1867.  * 

Road  Building.       Lands.       Surveying.       Grading.        Bridging.       Tunneling,      locomotives.         Cm.         Fencing.     IncideitiL 


245701 


9000 


// 
// 
1/ 
II 
II 
II 
II 

II 
II 
II 
II 
II 
II 
II 
II 
II 
II 
II 


I 


16 


2350 
110 


260 


3050 


8000 
460 


8200         20000 


15300         1710  67A 


2720 


1300 
440 


450 
300 


1890 


8484 
2600 


0 
1 
1 


Cars 

Fencing 

Incidentals 


Journal  1. 


ToUil 


11500 

36070 

20100 

6090 

1100 

8100i 

14800 

8200 

27600 

28500 

3310 

1200 

155070 


150 


2330 


5400 


7000 


13200 


20100 


6090 


90i 
1100 


230 
70 


1600 


8100         14800  8200         27600         28500        3310        1200 


i. 


318 


319 


i 


I 


I' 


til 


CONSTRUCTION  AND  EQUIPMENT, 


FEBRUARY,  1867. 


litt. 


£ 

^ 


What  Aeeout. 


1867. 

Feb. 


1  61  Incidental  Exps. 
It  ^2  Depots 

63  Road  Building 
€4  Lands 
^  65  Surveying 

66  Depots 

67  Grading 

68  Bridging 

69  Tunneling 

70  Locomotives 
n  do. 
n  do. 

71  Depots 
\12  \    do. 

73  Koad  Building 

74  Bridging 

75  Cars 
jk   do. 

76  Fencing 

77  Incidental  Exps. 


II 


Pd 

II 
II 
II 
II 
II 
II 


II 
II 
II 
II 
II 
II 
II 
II 
II 
II 
II 
II 
II 


For  what  paii 


Dispatch,  for  Advertising 

J.  &  A.  Patterson,  Building  Depot  at  East  Liberty 
R.  R.  Spike  Co.,  for  bill  of  Spikes 
Z.  Wainwright,  per  Deed  May  7,  1806 
W.  Moore  and  Assistants,  to  date 
R.  Shrum,  Building  Depot  at  Greensburg 
J.  Dignam,  for  Grading  93750  yds.  @  10  $9375 

Less  20 fo  retained         1875 

Cox  &  Co.,  Bridging  Turtle  Creek 

Ames  &  Co.,  for  Tunnel  at  Greensburg 

Baldwin  &  Co.,  for  Locomotive  and  Tender  "  Kiskiminitas" 
//  II        II  II  II         II      "Allegheny" 

II  II        II  II  II         n      "Altoona" 

D.  Wood,  Building  Depot  at  Johnstown 

S.  Maple        "  II      II   Lancaster 

Laborers'  Pay-Roll  for  Feb. 

for  Bridges  from  Greensburg  to  Altoona,  per  Contract 

Kirk  &  Rhodes,  for  8  Passenger  Cars,  @  $2000 
//  II         II    3  Baggage       "      @      500 

J.  Post,  for  700  Rods,  @  $1.00 

J.  Daub,  painting  signboards,  per  Contract 

Total  amount  pd.  for  Depots 


L*epoti, 


Road  Building       lands.       SorFoying. 


5000 


8000 


4500 


// 

» 
H 
If 
9 
# 

a 
n 


Road  Building 

Lands 

Surveying 

Grading 

Bridging 

Tunneling 

Locomotives 

Cars 

Fencing 

Licidentals 


Journal  2. 


Total 


10000 
8000 


13500 


1100 


900 


Grading. 


7500 


Bridging.       Tunneling.     LocomotireB.        Gin.         Feodng. 


800 


270 


14000 


8200 


7000 
8000 
7200 


31000 

18000 

1100 

900 

7500 

14800 

8200 

22200 

17500 

700 

11  800 

122700' 


18000 


1100    900 


820 


I  ( 


7500 ,   14800 


16000 
1500 


8200    22200    17500 


700 

530 

700    800 


821 


1  ■  I 


h' 


I 


FORM   OF  A   LOCAL   BILL   OF   LADING. 


C.  A.  CARPENTER,  FREIGHT  A«ENT,  PITTSBITRGH,  PA. 


in  HU  ^o<,<.  oraer,  >He  '"''<>''''«' ''ZZ:^Jh: l:lrTc:nZn:: pZin,  Fre^,  ana  C,ar,».  in 

€U. 

par  funds,  as  per  TaHff  ftates.  .  ^.   ^    *     ^. 

It  1.  acreed,  and  Is  part  of  the  Conrfderatlon  of  this  Contract! 

1    That  all  goods  received  for  transponation  shaU  be  properly  pac.ed.  and  distinctly  marked  with  the  name  of  the  consignee  and  the  Station 

""^1.  ^That^htp^nTyV/auia  Bail  Road  Company  shall  not  ^e  «.^nsible  fo^^^^^^^^^^ 

eoldtor  for  anv  loss,  injury,  or  damage  from  the  dangers  of  ra|l  ''"'^^  transportation^  IhefJaud  or  gross  neglgence  of  said  Company  or  its  servants; 
SefC  or  from  iny  cause  whatever,  unless  the  same  be  proved  to  .''''^e  CKicurred  from  '»>«  J^*^^  °%«™dg  are  intrusted  to  any  other  Company  or  person 
noVUable  for  an/damage  to  glass  or  fragile  articles,  unless  h«reV°  «?«"'''  -^  '««^'3^;^-^^  selected  shall  be  regarded  exclusively  as  the 

(Which  said  Pennsylvania  R:iil  Eoad  Company  "hereby  *"t»»°""d  »°  f,<'\;„'^^^^°'^P"^ghIll  not  in  any  event  be  responsible  for  the  negligence  or 
Agent  of  the  owner,  and  as  such  alone  liable;  »nd  the  Peo^^yJ^^Ji'^R?;''  «°/^  Road  Company  be  liable  for  any  loss  or  damage 

non-performance  of  any  such  Company  or  person ;  nor  in  any  event  shall  '''^J^^^^^^^P^'afe  days  after  the  time  when  said  property  has  or  ought 

^IriTee^^elil^e^^i^'x^hf  g'o^d^S^^^^^^  '-'-'^-^-  ^'^  ^^'^^^^  °'  ''''''''  "'''  '''"'''  '"  "" 

"ISH aiSSES^^^S^eJKSS:!  tS^^-Oe^ts  or  Warehouses  of  said  Company. 

t  ^'un"p^S.TrC^«oL:'pSrMrh7s!'ind  like  ^ 
.,  t^e  C^m^ny!from  the  moment  such  articles  are  delivered  from  the  cars  ^  djrect^  or  m^^^^^^^^  ^^^^^  ^^  ^^^  ^^^  arrival  or 

'^'ilf^f^S^or'.t  "c^p^nf ^fndlr^J^sTilf rtldin^ ro'fommenc^  upon  the  shipment  of  the  goods  from  this  Station,  and  to  terminate 
when  unloaded  from  the  cars.  — -— - 


■1>J1J^TIJS.S. 


.A.IITICX.ES. 


FORM  OF  A  THROUGH  BILL  OF  LADING. 

«KIIHSYI*¥JLHIJL  BJLII*  B0AB  COMPAMT. 

a  A  OABPENTER.  Freight  Agent,  Pittsburgh,  Pa.             S.  B.  KINGSTON,  Jr..  Freight  Agent,  Philadelphia,  Pa. 
C  A.  OAJiri-JS.  i±.m    reig      ^^^j^^^  BEOWN,  Agent,  N.  0.  B.  W.  Co.,  Baltimore. 

H.  H.  HOUSTON,  GENERAL  FREIGHT   ACENT,   PHILADELPHIA.  _ 

■xjFOJsr  THE  I'OXjXiO'wiiTCS-  coisriDiTionsrs. 

C^The  owner  or  Consignee  to  pay  freight  »»  Pti;,»,P-L'tfac?\^hat''?hVcrm'p:ny  ^ilf  n^ 

It  is  agreed,  and  is  part  of  the  consideration  of  this  contract,  ^nat  the  Company  yunoio«  ly  ^  tj^-g  or  Hollow  Ware,  nor  for  injury  to  the 
or  Queensware.  the  injury  or  breakage  of  Looking  G  asses,  Glass  Show  Cases  Picture  Frame>^  ^^^  ^^^  „f  perishable 

Wdden  contents  of  Packages,  nor  for  the  l»ss  in  ''^'K^t  or  otherw^e  of  Grain  or  Coffee  m  ^^^S'^  «>•  "^/^^  ^^^^  j^  ^  „  of  Lemons  or  Oranges  in 
Nicies,  nor  for  damages  arising  to  any  article  car^e^J^"™  '^^.^^^^''JVroviden^^^  by  Firs  from  any  cause  whatkvek.  while  in  transit 

SSes,  unless  covered  by  canvas,  or  loss  or  damage  »«  Goods  occaMoned  by  Pro.ident^^^^^^^  .^  consideration  of  the  Company 

any  other  Rail  Road  or  Transportation  Company,  or  Agent  ^xxd  ll'^^.^^lfiZXJj^^^^  Conditions  and  Provisions  of  this,  and  of  such  Bill  of 

exclusively  as  the  Agent  of  the  owner  or  consignee  and  sha  1  he  ^n"tled  ^  '^«  »'„7«^^;*  °'„o7"be,  in  any  event,  responsible  for  the  negligence  or  non- 
"^SAZc'^'r  a-^n^s^c'^lforpa^nto;  rgtn?^no^r^sh";f/r h^rpa^or^ATeK  liable  for  any  lessor  injury  except  upon  lU  or  their  respective 

LTnircr^irorTema^rrii  l^^.ll^'^^^ir^t^^tll^t'c^^^^^^^  or  Agent,  for  loss  or  damage  thereby,  this  Bill 

of  Lading  shall  be  deemed  and  taken  as  a  release  in  full  therefor  merchandise  is  loaded  into  the  cars  of  tile  Company,  and 

.j'XT.,3r.iS.-iTii\':;i«.^^o^^^^  ...  ^.  r™„  «„. .  u». 

The  Owner  or  Consignee  will  have  his  or  their  Agent  or  Kn>Pio>ees  to  receive  ana  re ra^^^  e  ^^    Owner's  risk,  or  be  removed,  at  the 

^    Said  merchandise  may  be  retained  for  a'' «>Tearage8  o^Jf  ^^^^^Ve^ponsfM  issumed.  for  any  loss  or  damage  to  such  merchandise, 

unle^s^'Ihtliim-le'reSd  in'^rS^^^  »»•  '^^^'»  **•»  '^^^  ^''^^  '^'  '^"'^  ^'^^'^  ''"^  ^^"^  ''"  '^^'^  " 

on«ht  to  have  been  delivered.  „,„„h„„p-i   frnm  such  cause  as  would  render  the  Carriers  liable,  it  is  expressly  agreed  that  they 

^''^N^'Tl'J^'ac^'eV^'ing^Vis  Bm  Shfp'pi^l'lrr'ither  Agent  of  the  owner  of  the  property  carried,  expressly  accepts  and  agrees  to  all 

iU  conditions,  stipulations,  and  exceptions. 


RAIL  ROAD  ACCOUNTS. 

OPERATING  EXPENDITURES, 


PENNSYLVANIA    RAIL    ROAD, 

JANUARY,  1867. 

1.  The  headings  of  the  columns  will  sufficiently  explain  the  use  of  this  book. 

2.  Its  ten  money  columns  have  also  their  representatives  in  the  General  Ledger,  which 
will  explain  themselves. — Refer  to  them. 

3.  The  final  footing  at  the  end  of  the  month  is  made  and  Journalized  like  the  last  book. 


323 


^a^j>!>^Tiis.s. 


A-HTIOXjES. 


322 


OPERATING  EXPENDITURES, 


c 


What  AccoDst. 


1867. 

Mar. 


I 


1 

2 

3 

4 

5 

6! 

7 

81 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

8  36 

37 

10  38 

39 

40 

41 

15  42 

43 

16,44 

1145 

18  46 

19i47 


5 

6 


Incidental  Exps. 

Track  Repairs 

Fuel 

Station 

Trains 

Engines 

Cars 

Station 

Shop 

Buildings 

Oil  &  Waste 

Incidental  Exps. 

Fuel 

Station 

Trains. 

Shop 

do. 

Engines 
Cars 
Track 
Buildings 
Oil  &  Waste 
Incidental  Exps. 
Fuel 
Train 

do. 
Station 
Shop 
Station 
Engines 
Cars 
Incidental  Exps. 

do. 
Track 

do. 
Fuel 

Incidental  Exps. 
Oil  &  Waste 

do. 
Incidental  Exps. 
Building 
Cars 
Engine? 
Station 
I    do. 
Trains 
Shop 


For  what  paid. 


Pd.  W.  G.  Johnston  &  Co.,  for  Blanks  and  Stationery 
Whitmore,  Wolff,  Duff  &  Co.,  for  Spikes 
James  Oak,  for  his  Bill  of  Wood 
Wm.  Ward,  1  mo.'s  Salary  as  Supt. 
Pay-Boll  for  Feby. 

Mitchell,  Stevenson  &  Co.,  for  Castings 
Kirk  &  Rhodes,  for  Glass 
W.  Darsie,  1  mo.'s  Salary 
Craig  &  Co.,  for  3  Stoves 

Carpenter  &  Co.,  for  Repairs  to  Pittsburgh  Depot 
Childs  &  Co.,  for  5  Bales  1500  lb.  Cotton 
W.  S.  Haven,  for  Printing  Cards  and  Wav  Bills 
Darlington  Coal  Co.,  for  400  Tons  Coal,  (^  $2.00 
Salaries  for  Feb'y 
Trains,  Pay-Roll  for  Feby. 
Geo.  Dexter  (Foreman),  Salary  to  date 
Blacksmiths'  Pay-Roll  for  Feby. 

Warden  &  Son,  Cylinder  Head  for  Locomotive  "  Driver" 
Kirk  &  Rhodes,  for  Bill  of  Locks,  &c. 
Bell  &  Ward,  for  New  Switch  at  Altoona 
Boyd  &  Murdoch,  Repairs  to  Office 
Fleming  &  Bros.,  Bill  of  Oil 
R.  M.  Riddle,  for  Advertising  to  date 
J.  A.  Reams'  Bill  of  Wood 
Brakesman's  Pay-Roll  for  last  month 
Conductor's         w  '/  n 

Laborers'  «  n  n 

Machinists'  ti  n  n 

Watchman's  Wages 

Craig  &  Co.,  Repairing  Pipe  and  New  Pipe  for  "  Velocity" 
Jas.  Sawyer,  for  Oak  Plank 
Daily  Post,  for  Advertising 
J.  Bailey  &  Co.,       i> 
Pay-Roll  for  M'ch  4 
II        II    II        II     6 
J.  Day,  150  Tons  Coal  delivered  at  Johnstown 
W.  S.  Haven's  Bill  for  Pjinting  Tickets 
F.  Sellers  &  Co.,  for  Oil 
B.  C.  &  J.  H.  Sawyer,  1200  lb.  Grease,  @  8/ 
W.  G.  Johnston  &  Co.,  for  Office  Stationery 
Hugh  Beatty,  for  Painting  Depot  at  Pittsburgh 
E.  Edmunson  &  Co.,  for  Upholstering 
Paine  &  Co.,  for  New  Spark-Catcher  for  "  Ajax" 
W.  White,  1  mo.'s  Salary  as  Freight  Agent  at  Pittsburgh 
D.  Hill,        I!  "  Passenger  n      n  n 

A.  Black,  1  mo.'s  Salan'  as  Freight  Conductor 
J.  Woodwell  &  Co.,  for'Tools 

Amounts  carried  forward 


324 


MARCH,  1867. 


Station. 


150 


200 


160 


140 
30 


180 
120 


980 


Trains.        Engines,    !  I      Can.  Track.  Buildings.     Oil  k  Waste.       FneL       lieidertab 


45 


80 
420 


1365 


390 


2300 


1600 


940 


560 
440 


50 


3650 


190 


60 


150 


130 


30 


170 


180 


190 


110 


120 


80 


220 


75 


180 


130 


120 


1  ti 


1  1 


150 


370 


250 


800 


110 


180 


300 


350 
96 


120 
110 


60 
30 


530 


500 


470 


480 


846   1400    930 


325 


Ot^ERATING  EXPENDITURES, 


I  ;         1 


Date. 


TT¥ 


:c=c: 


What  Account. 


I 


•1   i 


L 


1867.         II      I 

Mar.  19  48  Shop 
I      49  Track 
!     '*//     do. 
20  50  Buildings 
24  51  Cars 

52    do. 
26,53  Trains 

&4   do. 

55  Incidental  Exps. 
t      56  do. 

28  57  Fuel 
!68  Oil  &  Waste 

29  59Statioii 
'      60     do. 

61  Shop 
162    do. 

63  Trains 

64  Oil  &  Waste 

165  Fuel 

166  Trains 
t67  Shop 
1 68  Station 

69  Engines 

70  Cars 

71  Track 

72  Buildings 
)73  J^iation 


30 


SI 


I 


For  what 


w 


Amounts  bro't  forward 
Pd.  J.  Gardiner,  for  Horse  Hire  1  month 
"   Repairs  on  Division  No.  7,  in  Feby. 
//    •    //        w  II         II     9,  '/      '/ 

//    Masons'  Bill  at  Philadelphia 

for  14  Water  Coolers,  @  $5 

Wilson  &  Co.,  Bill  of  Lamps  and  Fitting 

Watson's  Salary  as  Passenger  Conductor 

Gray's  '/       n         »  " 

H.  Tunier,  for  Trunk  Lost 

Kay  &  Co.,  Freight        '/ 

A.  Bell,  for  Wood 

B.  L.  Fahnestock  &  Co.,  for  Oil 

Wilson,  Freight  Agent  at  Altoona,  Salary  for  this  month 
Hay,  Passenger      ii       n        n  "  "      "         " 

G.  Dexter  (Foreman),  Salary  for  this  month 
Blacksmiths'  Pay-RoU  for  this  month 
Brakesman's        n  n  *' 

for  Rags  and  Tallow 
Baird  &  Sons,  700  Tons  Coal,  @  $2 
Fireman's  Pay-Roll  for  this  month 
Machinist's  "  "  " 

W.  N.  Davis,  Salary  for  this  month 
Machinists  at  Philadelphia 
Warren  &  Lee,  of      '/ 
for  New  Rail  on  Sees.  17,  18,  19,  &  24 
for  Enlarging  Ofl&ce  at  Pittsburgh 
Secretary  &  Clerks'  Pay-Roll  at  Philadelphia 

Amount  pd.  for  Stations  this  month 


M 

ft 
II 
II 
II 
II 
II 

n 
I  u 
II 
n 
II 


u 

w 

B 
H 
W 
W 

n 
» 
II 


II 
II 
II 


II 
II 

» 

u 
II 


II 
II 
II 


Shop 
Trains 
Engines 
Cars 
Track      ii 
Buildings 
Oil  &  Waste 
Fuel        // 
Incidentals 


Jour.  2.  Total  Operating  Expenditures  for  March 


826 


MARCH,  1867. 


Station. 


980 


140 
110 


Trains. 


Engines. 


2800        3G50 
30 


200 


1670 


3100 
4305 
52801 

4200 

5100,  , 

4400i 

2160 

1105 

2880 

1230 

.S3760 


80 
420 


60 
60 


530 


1475' 


530 


980 


4305 


5280 


Cars. 
500 


Track.      |l   Buildings.     Oil  &  Waste.       Fuel 


70 
60 


3670 


470 

440 
160 


480 


846    1400 


Iieideitik 
930 


4470 


P   320 


¥ 


y 


4200 


5100 


3330 


4400 


90 
210 


80 


204 


55 


1400 


1360 

t 

2160 


1105   2880   1230 


327 


II 


t 


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0 
0 


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H  g 
P4 


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EAIL  ROAD  ACCOUNTS. 

OPERATING  RECEIPTS, 


PENNSYLVANIA   RAIL   ROAD, 

JANUARY,  1867. 

1.  The  headings  of  the  columns  of  this  hook  fully  explain  their  use.  Its  three  money 
columns  nave  their  representatives  in  the  General  Ledger. 

2.  There  are  four  columns  used  in  Rail  Road  Accounts ;  but,  as  I  cannot  see  any  use  for 
the  fourth  column  for  totals,  I  have  used  only  three  of  them,  bringing  the  aggregate  into 
the  Freight  column  at  the  end  of  the  month,  from  whence  they  are  journalized.  See 
Journal  entry,  March  31st. 


I 


OQ 


l! 


329 


.CD 


-+^ 


i 

6 


328 


•     I 


I    OPERATING  RECEIPTS  OP  P.  R.  R.  FOR  MARCH,  1867. 


I  '' '  i 


( 


Date. 


Name. 


Mar. 


Geo.  Brown 
J.  W.  Vann 
Hiram  Fish 
J.  Scott 
W.  Wills 
R.  Weed 
J.  Powers 
W.  Ryan 
J.  Hilton 

B.  Ray 

C.  King 
R.  Howe 

-  U.S.  Mail 
do. 
do. 
do. 
do. 

15"  J.  Powers 
R.  Weed 
i  W.Wills 
f  J.  Scott 
Hiram  Fish 
I  J.  W.  Vann 
Geo.  Brown 
H.  Lee 
C.  Dickson 
R.  Bill 
J.  Watson 
W.  King 
B.  Hagan 
31 ,  R.  Weed 
j  J.  Powers 
W.  Wills 
!  Geo.  Brown 
J.  Scott 
J.  W.  Vann 
Hiram  Fish 
J.  Watson 
,,  R.  Bill 
I  C.  Dickson 

B.  Hagan 
,,  W.  King 
li  U.S.  Mail 


Stetion. 


Journal  2. 


Freights.         Passapcs.  Mails 


Greensburg 
Blairsville 
Cresson 
Altoona 
Harrisburg 
Lancaster 
Philadelphia 
Conductor 
do. 
do. 
do. 
do. 
Pittsburgh  to  Philadelphia 
w  H  Altoona 

II  II  Greensburg 

//  //  Lancaster 

//  //  Harrisburg 

Philadelphia 
Lancaster 
Harrisburg 
Altoona 
Cresson 
Blairsville 
Greensburg 
Pittsburgh 
Philadelphia 
Lancaster 
Pittsburgh 
Harrisburg 
Altoona 
Lancaster 
Philadelphia 
Harrisburg 
Greensburg 
Altoona 
Blairsville 
Cresson 
Pittsburgh 
Lancaster 
Philadelphia 
Altoona 
Harrisburg 
Pittsburgh  to  Johnstown 

Freight 

Passage 

U.S.  Mail 

Receipts  for  this  month 


560 
340 
180 
760 
860 
640 
970 


1900 
700 
240 


712 
680 
518 
670 
530 


2200 

1890  i 

1860 

1790 

1110 

1370 

1630 

2150 


1460 
340 
490 
710 

800 


4700 
6300 
4970 
1770 
1860 
1300 
1100 


2770 
2630 
2690 
2540 
2512 


40310 

34092 

3990 

78392 


1400 

260 
500 
2590 
2610 
2470 
2330 
2840 

\ 

34092 


190 

3990 


MIL  ROAD  ACCOUNTS. 


JOURNAL, 


PENNSYLVANIA  RAIL  ROAD, 


JANUARY,  1867. 


1.  This  book  serves  for  a  Journal  and  General  Day  Book.  The  first  three  entries  are 
original,  and  are  first  recorded  in  this  book. 

2  These  books  are  kept  by  the  Secretary,  who  debits  and  credits  the  Treasurer  for  all 
receipts  and  payments  of  money.  Some  Companies  employ  a  Treasurer,  who,  under 
instructions  from  the  board,  tak«s  charge  of  all  the  revenues  of  the  Company,  and  pays 
out  all  their  expenditures,  reporting  the  same  to  the  board.  For  some  Companies  the 
banker  is  their  only  Treasurer.  .  . 

3.  The  first  entry  in  March,  and  the  second  and  third  entries  on  the  31st,  are  original. 

4.  When  the  Journal  is  posted,  compare  and  check  the  Journal  and  Ledger,  then  take 
off  a  trial  sheet  and  prepare  to  close  the  Ledger,  and  make  a  dividend.  For  this  purpose 
open  the  six  accounts  on  page  6  of  the  Ledger. 

5  The  four  entries  on  Journal,  page  3,  we  obtain  from  the  Ledger;  but  the  same 
accounts  may  be  closed  on  the  face  of  the  Ledger  without  a  Journal  entry,  as  we  do  in 
Mercantile  Books.     I  have  followed  the  practice  of  Rail  Road  Accountants. 

6.  You  will  see  that  the  Operating  Account  finally  closes  into  Profit  &  Loss  with  a  net 
gain  of  $44,632.  Of  this  the  Directors  divide  5%  on  the  paid-up  Capital  of  §300,000, 
and  place  $20,000  to  the  credit  of  the  Shareholders  on  the  Stock  Ledger.  See  Journal,  p.  4. 
The  surplus  is  carried  to  the  credit  of  Surplus  Capital,  or  Contingent  Fund,  as  it  is  some- 
times called. 

7.  The  Dividend  must  be  carried  to  the  credit  of  the  Dividend  Account  j  and  as  the 
stockholders  draw  their  Dividends,  that  account  is  Dr.,  and  Cash,  or  the  Bank  Account,  is 

credited.  ,  n       j  o 

8.  The  entries  for  closing  the  Ledger  and  making  the  Dividend  are  all  made  on  pages  S 
and  4  of  the  Journal,  from  which  they  are  posted  to  the  Stock  and  General  Ledger.  See 
posting  to  Stock  Ledger  from  first  entry  in  the  Journal. 


881 


330 


.1  ■ 


1 
1 
1 
1 
1 
1 
1 

2 
2 
2 
2 
2 


2 
2 
2 
2 
2 
3 
3 
3 
3 
3 
3 


PITTSBUEGH,  January  2,  1867. 


Treasurer,  Dr. 

To  Capital  Stock,  for  1st  Instalment  paid  by  Shareholders 
R.  Fulton       1200  Shares  of  8100  ea.  Cash  10  %  812000 


100000 


T.  Graham       500  do 

D.  Martin        800  do 

A.T.HowdenlOOO  do 

J.  Carver         900  do 

A.  Bowman   1000  do 

W.  M.  Lyon  1500  do 

Gr.R.Dunean  1500  do 

W.  H.  Duff     600  do 

R.  Banks       1000  do 

Shares,  10000 


100  // 
100  // 
100  // 
100  // 
100  // 
100  // 
100  // 
100  // 
100  // 


do 
do 
do 
do 
do 
do 
do 
do 
do 


5000 

8000 
10000 

9000 
10000 
15000 
15000 

6000 
10000 


First  Instalment,  8100000 


1    Cash,  Dr. 

1    To  Treasurer,  for  Check 


15. 


31. 


1     Sundries,  Dr.  To  Bonds  Payable 

1     Treasurer,  for  n/p,  received  of  W.  Dumas  &  Co.  for  sales 

1     Discount,  for  10%  Discount  on  above  sales 


Sundries,  Dr.  To  Cash 

Paid  for  Construction  &  Equipment  this  month 
Depots 

Road  Building 
Lands 
Surveying 
Grading 
Bridging 

Tunneling  # 

Locomotives 
Cars 
Fencing 
Construction  Incidentals 


Treasurer,  Dr. 

To  Capital  Stock,  for 
R.  Fulton  1200 
T.  Graham  500 
D.  Martin  800 
A.T.Howden  1000 
J.  Carver  900 
R.  Banks  1000 
A.  Bowman  1000 
W.  M.  Lyon  1500 
G.R.Duncan  150t) 
W.  H.  Duff     600 

Shares,  10000 


Feb.  1. 


170000 


540000 
60000 


2d  Instalment  paid  by  Shareholders 
Shares  of  8100  ea.  Cash  20%  824000  ii 


86070 

20100 

6090 

1100 

8100 

14800 

8200 

27600 

28500 

3310 

1200 


200000 


do 
do 
do 
do 
do 
do 
do 
do 
do 


100  // 
100  // 
100  // 
100  // 
100  /r 
100  // 
100  // 
100  // 
100  V 


do 
do 
do 
do 
do 
do 
do 
do 
do 


10000  i 
16000  I 
20000  I 
18000  I 
20000  : 
20000  I 
30000  i 
30000 
12000 


Second  Instalment,  8200000 


100000 


170000 


600000 


155070 


200000 


332 


V 


February  15,  1867. 


Cash,  Dr. 

To  Treasurer,  for  Check 


120000 


28. 


2 
2 
2 
2 
2 
3 
3 
8 
3 
3 
3 


Sundries,  Dr.  To  Cash 

Paid  for  Construction  &  Equipment  this  month 
Depots 
Road  Building 

Lands 

« 

Surveying 

Grading 

Bridging 

Tunneling 

Locomotives 

Cars 

Fencing 

Construction  Incidentals 


120000 


122700 


3 
2 


March  1. 


Sundries,  Dr.  To  Bills  Payable 

Road  Building,  for  notes  to  E.  Dudley  &  Co.,  at  6,  8,  9, 

12,  and  18  months,  for  R.  R.  Iron 
Interest,  for  amount  added  in  notes 


4 
4 
4 
5 
5 
5 
5 
5 
5 
5 


»1 
1 


4 
1 


3L 


31000 

18000 

1100 

900 

7500 

14800 

8200 

22200 

17500 

700 

800 


169080 


1 
4 
4 
4 


Sundries,  Dr.  to  Cash 

Paid  Operating  Expenses  this  month 
Station 
Sliop 
Train 
Engines 
Cars 
Track 
Buildings 
Oil  &  Waste 
Fuel 
Operating  Incidentals 


160000 
9080 


Cash,  Dr. 

To  Treasurer,  for  Check 


// 


Interest,  Dr. 

To  Cash,  Pd.  Int.  for  6  mths.  on  8600,000  Bonds, 
Ifo  Exchange 


818,000 
180 


3100 
4305 
5280 
4200 
5100 
4400 
2160 
1105 
2880 
1230 


52400 


33760 


52400 


18180 


18180 


Treasurer,  Dr.  to  Sundries 

To  Freights,  for  Receipts  for  this  month 
//   Passages  w  "  u        ii 

II   Mails        n  11  w         a 


78392 


40310 

34092 

3990 


333 


March  31,  1867. 


March  31,  1867. 


6 
2 
2 
2 
2 
2 
3 
3 
3 
3 
3 
3 
4 
1 


6 
4 
4 
4 
5 
5 
5 
5 
5 
5 
5 


Construction  &  Equipment,  Dr.  To  Sundries 

To  Depots  To  close  acc't 

Road  Building  do 

Lands  do 

Surveying  do 

Grading  do 

Bridging  do 

Tunneling  do 

Locomotives  do 

Cars  •                        do 

Fencing  do 
Construction  &  Equipment  Incidentals        do 

Interest  do 

Discount  do 


Operating,  Dr.  To  Sundries 
To  Stations 

Shop 

Train 

Engines 

Cars 

Track 

Building 

Oil  &  Waste 

Fuel 

Operating  Incidentals 


To  close  acc't 
do 
do 
do 
do 
do 
do 
do 
do 
do 


6  Sundries,  Dr.  To  Operating 

4  Freights 

4  Passages 

4'  Mails 


To  close  acc*t 
'   do 
do  ' 


6    Operating,  Dr. 

6    To  Profit  &  Loss,  for  gain 


525030 


33760 


40310 

34092 

3990 


67070 

198100 

7190 

2000 

15600 

29600 

16400 

49800 

46000 

4010 

2000 

27260 

60000 


3100 
4305 
5280 
4200 
5100 
4400 
2160 
1105 
2880 
1230 


78392 


44632 


44632 


6 


Profit  &  Loss,  Dr.  To  Sundries 
To  Dividend  No.  1 

For  5%  on  $300000,  payable  in  Cash  to  Shareholders 

R.  Fulton  5  %  on  ^36000  paid  in 


2 
2 
2 
2 
2 


T.  Graham 
D.  Martin 
A.  T.  Howden 
J.  Carver 
R.  Banks 
A.  Bowman 
W.  M.  Lyon 
G.  R.  Duncan 
W.  H.  Duff 


15000 
24000 
30000 
27000 
30000 
30000 
45000 
45000 
18000 


// 


$1800 
750 
1200 
1500 
1350 
1500 
1500 
2250 
2250 
900 


44632 


15000 


S300000  Cash  Div'nd,  $15000 


To  Capital  Stock 

For  $2  pr  Sh'e  on  10000 

T.  Graham  $2  on 

D.  Martin 

R.  Fulton 

A.  T.  Howden 

J.  Carver 

R.  Banks 

A.  Bowman 

W.  M.  Lyon 

G.  R.  Duncan 

W.  H.  Duff 


Sh's  to 

credit  of  Sharehold's 

500  Shares 

$1000 

800 

// 

1600 

1200 

// 

2400 

1000 

It 

2000 

900 

II 

1800 

1000 

II 

2000 

1000 

II 

2000 

1500 

II 

3000 

1500 

It 

3000 

600 

n 

1200 

20000 


|!  Shares 

6     To'  Surplus  Capital 

^    For  amount  of  gain  undivided 


10000  Stock  Div'nd,  20000 


9632 


334 


335 


li 


w^;^  PETROLEUM  BILL  OF  LADING.  ^^^ 

OWNER'S   RISKOF  FIRE. 


H.  H.  HOUSTON, 

General  Freight  sigeni^  ^^itadetphia. 


a  A.  CABBENTEB, 

Freight  Agent ^  ^titburgh . 


.^f^tvo^, ^9^ ,  y; 

Barrels,  said  to  contain and  marked 

to  be  transported  to : Consignee,  at 

at Cents  (freight  for  this  and  connecting  Companiee 

or  Agents)  per  one  hundred  pounds,  subject  to  the  following  Conditions  and  Agreement: — 

FiT%L—"l\\&  owner  or  consignee  shall  pay  freight  and  charges  thereon  at  specified  rates  at  time  of 
delivery,  as  the  same  from  time  to  time  arrives. 

iS^nd.— This  merchandise  may  be  carried  in  Box-Cars,  Covered  Skeleton-Cars,  or  on  open  Flat- 
form-Cars ;  if  destined  beyond  the  line  of  the  Philadelphia  &  Erie,  Northern  Central,  or  Pennsylvania 
Rail  Roads,  it  may  be  transported  by  water,  in  boats,  barges  or  lighters,  or  it  may  be  entrusted  or 
delivered  in  the  Cars  of  this  Company,  or  otherwise,  to  any  other  Railroad,  or  Transportation  Com- 
pany, or  Agent ;  and  such  Rail  Road,  or  Transportation  Company,  or  Agent  so  selected,  shall  be 
regarded  exclusivelv  as  the  Agent  of  the  owner  or  consignee,  and  shall  be  entitled  to  the  beneht  of 
the  Conditions  and 'Provisions  of  this,  and  of  such  Bill  of  Lading  as  they  may  deliver  therefor;  and 
the  Pennsylvania  Rail  Road  Company,  Lessee  Philadelphia  and  Erie  Railroad,  shall  not  be,  in  any 
event,  responsible  for  the  negligence  or  non-performance  of  any  such  Company  or  Agent,  nor  shall 
such  Company  or  Agent  be  liable  for  any  loss  or  injury  except  upon  its  or  their  respective  routes,  and 
while  such  merchandise  is  in  their  respective  custody.  ...  ,    ,         ,  ,  ^  ^t  ^,^k  «.-,^ 

Third.-Thvit  the  owner  or  consignee  in  consideratton'qf  the  extremelij  hazardmis  naXwreqf  «^  mer- 
eJuindiae,  which  is  not  covered  by  any  eara  charge  for  transporlation,  hereby  assumes  all  risk  from  leakage, 
evaporation,  and  loss  by  fire,  while  in  transit,  or  at  Depots  or  in  Stations,  or  on  board  boats,  vessels  or 
lighters,  from  any  cause  whatever,  and  all  dangers  and  delays  of  Rail  Road  and  Water  Transportation 
between  the  place  of  shipment  and  final  delivery ;  and  in  any  claim  or  demand,  suit  at  law  or  eqwity. 
against  this  Company  or  Transportation  Company  or  Agent,  for  loss  or  damage  thereby,  this  Bill  of 
Ladint'  shall  be  deemed  and  taken  as  a  release  in  full  therefor. 

Fourth.— Whatever  responsibility  is  assumed  under  this  Bill  of  Lading  shall  begin  when  the  mer- 
chandise is  loaded  into  the  cars  of  the  Company  at  the  above  station,  and  cease  when  unloaded  there- 
from, or  entrusted  or  delivered  as  aforesaid,  and  which,  it  is  agreed,  shall  constitute  a  delivery. 

Fifth.— The  owner  or  consignee  will  have  his  or  their  agent  or  employees  to  receive  and  remove 
the  said  merchandise  as  the  same  from  time  to  time  arrives  and  is  delivered  as  aforesaid ;  but  if  not 
then  removed,  the  same  will  remain  at  place  of  unloading,  or  be  removed,  at  the  option  of  the  Com- 
pany, to  such  place  of  deposit  as  it  may  select,  at  the  risk  and  cost  of  the  owner  or  consignee. 

Sixth.— Said  merchandise  may  be  retained  for  all  arrearages  of  freight  and  charges  due  this  Com- 
pany on  other  goods  by  the  same  consignee  or  owner.  v      i  j 

Seventh.— lHoT  shall  any  agent  hereunder  be  liable,  by  reason  of  any  responsibility  hereby  assumed, 
for  aiiy  loss  or  damage  to  such  merchandise,  unless  the  claim  therefor  be  presented  in  writing  at  the 
Office  of  the  General  Freight  Agent  of  the  Pennsylvania  Rail  Road  Company  in  Philadelphia,  above 
mentioned,  within  ten  days  after  the  time  when  the  same  has  been  or  ought  to  have  been  delivered. 

Eighth.— In  case  of  logs  or  damage  to  anv  property  herein  mentioned,  from  such  cause  as  would 
render  this  Company  liable,  it  is  expressly  agreed  that  they  shall  have  the  benefit  of  any  insurance 
that  may  have  been  or  may  be  efiected  upon,  or  on  account  of  said  property,  and  the  owner,  consignee 
and  shipper  severally  agree  that  it  shall  be  so  inserted  in  the  policy,  and  the  measure  of  such  loss  or 
damage  shall  be  the  market  price  of  such  property  at  the  time  and  place  of  shipment. 


cJ^i 


vaent. 


RAIL  ROAD  ACCOUNTS. 

STOCK  LEDGER, 
PENNSYLVANIA   RAIL   ROAD   COMPANY, 

JANUARY,  1867. 

1.  This  Ledger  has  an  account  opened  in  it  for  every  shareholder.  The  rulings  and  head- 
ings explain  themselves.  No  accounts  are  kept  in  this  Ledger  but  those  of  the  shareholders, 
and  in  business  it  must  have  an  index  in  the  usual  form.  When  a  shareholder  transfers  the 
whole  or  only  part  of  his  stock  (a  thing  that  occurs  daily),  the  Secretary  makes  an  original 
entry  on  the  Transfer  book,  from  whence  it  is  posted  to  this.  See  Transfer  Ledger  from  J. 
Carter  to  T.  Graham  $27520,  and  to  R.  Manly,  $1280.  While  the  Directors  are  preparing 
the  dividend,  they  generally  give  notice,  ten  days  before  declaring  it,  that  no  stock  will  be 
transferred  until  after  it  is  declared.  The  holders  of  the  stock  up  to  that  day  are  entitled 
to  the  dividend  unless  otherwise  agreed  upon  by  the  purchaser :  but  the  purchaser  buys  the 
interest  in  the  surplus  capital  with  the  stock. 

2.  When  you  take  a  trial  balance  off  your  General  Ledger  before  closing,  and  when 
making  the  dividend,  you  must  also  take  off  from  the  Stock  Ledger  a  list  of  the  Shareholders, 
with  the  amount  paid  by  each.  The  aggregate  amount  must  agree  with  the  credit  of  the 
Capital  Stock  in  the  General  Ledger.     In  this  instance  it  is  $300000. 

3.  This  Ledger  is  never  closed;  but  the  individual  accounts  in  it  are  closed  when  they 
transfer  all  the  stock  in  J.  Carver's  account. 


W 


337 


336 


1     Dr. 


THOMAS 


p.    (hares. 


B. 


D4VID 


I 


A.  T. 


JAMES 


1867. 

Apr. 


w 


GRAHAM. 


Cr. 


1867. 
Jan. 
Feb. 
Mar. 

Apl. 


31 

6 


2  '  Treasurer 
1 


p.  Shares.  7o 

1      500  iO      5000 
0    10000 


Profit  and  Loss 
J.  Carver  f. 


//      2      1000 
860  S2    27520 


PULTON. 


1867. 

Jan. 
Feb. 
Mar. 


Jl    Profit  and  Loss 


Treasurer 

n 


1200 


0  112000 
20  24000 
2400 


MARTIN. 


1807. 

Jan. 
Feb. 


2 
1 


Treasurer 


Mar.    81   Profit  and  Loss 


800 10  8000 
n  20  .16000 
//      2      1600 


HOWDEN. 


1867. 
Jan. 
Feb. 


2  I 'Treasurer 
1 


Mar.    $1    Profit  and  Loss 


1000  10  10000 
II  20  20000 
//      1 2      2000 


CARVER. 


2   R.  Manly 
6   T.Graham 


'  1867. 

Jan. 
Feb. 
Mar. 


2 
1 

ai 


Treasurer 

// 
Profit  and  Loss 


900 10  9000 
//  20  18000 
//      2     1800 


28800 


338 


Dr. 


R. 


BANKS. 


Gr.     2 


p. 

Shares. 

1 

1867. 
Jan. 
Feb. 
Mar. 

2 

1 
31 

Treasurer 


p.  Shares.  %\\  \ 

1  (1000  10  1 10000 

'      II   20    20000 

4       w     2      2000 


BOWMAN. 


WM.  M. 


GEO.  R. 


WM.  H. 


iser.  I    II 

Jan.  2   Treasurer 

Feb.  1         '/ 

Mar.  81  <  Profit  &  Loss 


1000  10    10000 
//     20    20000 
2      2000 


// 


I 


LYON. 


1807. 

Jan.  2   Treasurer 

Feb.  1 

Mar.  31   Profit  &  Loss 


1    1500 10    15000 

II     20    30000 

4      »     ,2      3000 


1     1 


DUNCAN. 


1867.  '      11 

Jan.  '  2   Treasurer 

Feb.      1         // 

Mar.  31   Profit  &  Loss 


1        !    fi 
1    150010    15000 
//     20    30000 
4      II      2      3000 


DUPR 


il 


ROBERT 


1867. 
Jan. 
Feb. 
Mar.    $1 


2 
,1 


Treasurer 

// 
Profit  &  Loss 


1  I   600  10  II  6000  1 
//    20    12000' 
1200 


MANLT. 


1867. 
Apr. 


^39" 


J.  Carver 


f    1       40  32      12S0 


0 
0 

H 

> 

H 


1 

I 

o 

Q 
«! 
O 
P3 


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o 


o 

04 


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o    '   o 

(M  O 


-      --      lO      lO      »0      lO      »0      lO 


iC      aO      ^      O 


§P         O  O 

CO         O  O 

9*3       O  O 

^  p.       o  o 

CO  CO 


o  o 
o  o 
o    o 


o 
o 
o 

00 


o 

o 
o 

CO       40 
CO 


o  o 
o  o 
o     o 

o 

CO 


o 

o 
o 

JO 


o 
o 

o 


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o 
o 
o 

,   o 

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I 


o 

00 


P4 

8 

m 

OD 


bo 

p 

Pu 


•o 
•3 


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P3  a 


p 

OD  rj 

P  ^ 

e3       O 


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> 


m  PQ  o 


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p'^ 

03 
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Pn    O     S 


p 
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1-^ 


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e3 


340 


RAIL  ROAD  ACCOUNTS. 


GENERAL    LEDGER, 


PENNSYLVANIA  RAIL  ROAD. 


1.  This  book  and  the  Stock  Ledger  are  generally  opened  at  once,  as  all  entries  relating 
to  the  shareholders  have  to  be  posted  into  that  Ledger,  and  this  one  also.     See  the  posting 

to  both,  January  2 

2.  This  Ledger,  in  business,  must  have  an  Index,  but  it  need  not  be  written  here.  The 
Bonds  Payable  account  is  the  same  as  the  Bills  Payable  account,  and  may  be  posted  to  that 
account,  but  it  is  better  to  follow  the  established  custom. 

3.  All  the  accounts  which  you  closed  into  Construction  &  Equipment  account  repre:ieiit 
property,  and  the  debit  side  of  that  account  stands  in  the  debit  side  of  the  Balance  accouiit 
as  assets  of  the  company. 

4.  Operating  accounts  are  of  the  same  nature  as  Profit  &  Loss,  into  which  they  finally 
close.  Dividend  and  Surplus  Capital  are  both  accounts  representing  liabilities,  and  are 
entered  in  the  credit  of  the  Balance  account. 

5.  All  the  accounts  that  close  into  Construction  &  Equipment  and  Operating  account 
remain  closed,  and  the  unoccupied  space  below  them  may  be  used  for  a  new  account  withuut 
a  new  heading. 

6.  By  comparing  these  Books  before  writing,  the  student  who  is  well  versed  in  Double 
Entry  Book-keeping  will  have  no  trouble  in  understanding  them. 

7.  Surplus  Capital  is  a  reserve  fund  to  enable  the  directors  to  make  uniform  dividends 
when  business  is  unfavorable. 


w 


341 


<4   ■! 

lit,: 


1 1 


1 1 


Dr. 


CAPITAL 


STOCK 


Cr. 


1867. 

Jan. 
Feb 
Mar.  1  31 


2  Treasurer 


Profit  &  Loss 


1 
4 


lOOOOQ 

200000 

2000(J 


TREASURER'S 


ACCOUNT. 


1867. 

Jan.  ;    3  Capital  Stock 

t  31  Bonds- Payable 

Feb.      I  Capital  Stock 

Mar. '  3:^  Sundries 


Balance 


100000 

540000 

200000 

7839^ 


1867.  '       ' 

Jan.    1^  Cash 
Feb.   151     // 
Mar.   31     // 

Balance 


1 
2 

6 


CASH 


ACCOUNT. 


18«7.  •       I 

Jan.    15  Treasurer 
Feb.    la         If 
Mar.  31 


// 


1  170000 

2  120000 
52400 


Balance 


342400 


12690 


1807. 

Jan.    31  Sundries 
Feb.    28         // 
Mar.  31         // 

Interest 
Balance 


1 
2 


BONDS 


PAYABLE. 


I    I 


DISCOUNT 


1M7. 

Jan.    31  Sundries 


ACCOUNT. 


1867. 


Jan.    31  Bonds  Payable 


6000a 


1807. 


Mar. !  31  Constr.  &  Equip. 


342 


170000 

1200001 

52400 
57.')9J>2 

918392 


155070 

122700 

33760 

18180 

12690 

342400 


600000 


60000 


Dr. 


DEPOTS. 


Gb.     2 


1 

2 

36070 
31000 

67070 

1867. 

Mar. 

i 

31 

1 

31  Constr.  &  Equip 


ROAD 


BUILDING. 


1867.  I 

Jan.    31  Cash 

Feb. 

Mar. 


28     // 
1  Bills  Payable 


I 
2 


20100 

18000 

160000 

198100 


1867. 


Mar.  1 31  Constr.  &  Equip.  3   198100 


19810 


<1 


LANDS 


ACCOUN"' 


1867. 

Jan. 
Feb. 

31 

28 

Cash 

// 

* 

SURVEYING 


ACCOUNT. 


1867. 

Jan. 

Feb. 


31  Cash 
28     // 


1 
2 


1100 
900 


2000 


1807. 


Mar.  31  Constr.  &  Equip.    3 


2000 
2000 


I 


GRADING 


ACCOUNT. 


1867. 

Jan. 
Feb. 

31 

28 

Cash 
// 

1 

2, 

'       8100 
7500 

15600 

1 

1867. 

Mar. 

31 

Constr.  & 

- 

15600 
15600 


343 


«  1 


Db. 


BBIDGING. 


Cb. 


1867.  '       ! 

Jan.    31  Cash 
Feb.   29      // 


1 
2 


14800 
14800 


1887. 

Mar. 


311  Constr.  &  Equip. 


3       2960d 
29600| 


TUNNELING 


ACCOUNT. 


1887. 

Jan. 

31  Cash 

Feb. 

28 

// 

L 

1 

2 


8200 
8200 


16400 


186T. 

Mar. 


31  Constr.  &  Equip. 


16400 


164001 


LOCOMOTIVE 


ACCOUNT. 


1887. 

Jan. 
Feb. 


31  Cash 
28       // 


1 
2 


.  27600 
22200 

"49800 


1887. 


Mar.  31  Constr.  &  Equip. 


4980« 


49800 


CABS 


ACCOUNT. 


1867. 

Jan.  ,  31  Cash 
Feb.  I  28      II 


1 
2 


285001 
17500 

46000 


1887. 

Mar. 


31  Constr.  &  Equip. 


46000 


46000 


FENCING 


ACCOUNT. 


1867. 

Jan.    31  Cash 
Feb.    28     H 


1 
2 


3310 
700| 

4T)i0 


1867. 


Mar.   31  Constr.  &  Equip.    3 


,  CONSTRUCTION 


INCIDENTALS. 


1887. 

Jan. 


31  Cash 


Feb.  ,  28     // 


Mar.  31  Constr.  &  Equip.    3 


2000 
2000 


BILLS 


PAYABLE. 


1867. 

Mar.     1  Sundries 


344 


169080 


Dr. 


INTEREST. 


Cb.     4 


1867. ' 

Mar.     1  Bills  Payable 
31  Cash 


9080 
18180 


'27260 


1867. 

Mar. 


31 


Constr.  &  Equip.  \  3 


27260 
27260 


FREIGHT 


1867. 

Mar,  31  Operating 


40310 


ACCOUNT. 


1867. 

Mar.   31  Treasurer 


40310 


PASSAGE 


1867. 

Mar. 


31   Op 


erating 


34092 


ACCOUNT. 


1867. 

Mar.   31  Treasurer 


34092 


U.  S.  MAIL 


SERVICE. 


STATION 


SERVICE. 


3100 


SHOP 


1867.  I       ! 

Mar.   31  Cash 


SERVICE. 


|l     1867.  '       I 

4305  Mar.   31  Operating 


4305 


TRAIN 


SERVICE. 


1867, 

Mar 


345 


5280 


9      Db. 


ENGINE 


SERVICE. 


ism. 
Mar.   31  Cash 


2 


4200 


CAB 


REPAIRS. 


iser. 
Mar.  31  Gash 


T]EtACE 


REPAIRS. 


Mar.   31  Cash 


2 

•       4400 

'     1867. 

Mar. 

1 

1 
81 

Operating 


BXnLDING 


REPAIRS. 


1807.  '      < 
Mar.  31  Cash 


2|| 


2160 


18«7.  '       ' 

Mar.  31,  Operating 


OIL 


& 


WASTE. 


1867.  ' 

Mar.   31  Operating 


FUEL 


ACCOUNT. 


1867. 

Mar.   31  Cash 


2 


288rt 


1867. 

Mar.   31  Operating 


OPERATING 


INCIDENTALS. 


1867. 

Mar.  31!  Operating 


3 


Cr. 


4400 


2160 


2880 


1230 


Dr. 


PROFIT 


& 


LOSS. 


44632 


1867. 

Mar.  31 


Operating 


Cb. 


44632 


CONSTRUCTION 


& 


EQUIPMENT. 


1867. 

Mar.   81  Sundries 


3!    525030 


BALANCE 


ACCOUNT. 


1867. 

Mar.  31  Treasurer 
Cash 


f    1  i    575992 
1;      12690 
Constr.  &  Equip.     6      525030 


1113712 


1867. 

Mar.  31  Capital  f    1 

,  Bonds  Payable 
I       Bills  Payable 
I  Dividend  No.  1 
I  Surplus  Capital 


820000 

600000 

3      169080 

6,       15000 

9632 

ill3712 


OPERATING 


ACCOUNT. 


1867. 

Mar.  31 


Sundries 
Profit  &  Loss 


1867. 

Mar    31  Sundries 


I     ( 


78392 

78392 


DIVIDEND 


No.  1. 


1867.  ' 

Mar.  31  Profit  &  Loss 


15000 


SURPLUS 


CAPITAL. 


9632 


QUESTIONS  FOR  EXAMINATION  ON  RAIL  ROAD  ACCOUNTS. 

I.  Where  are  the  totals  of  the  Construction  &  Equipment  Day  Book  carried  to?     (N. 

2   Whatare  the  entries  of  this  book  made  from?     (N.  5,  p.  315.)  ju,„„„  „ 

3.  Where  are  the  total  amounts  of  the  money  columns  of  the  Operatmg  Expenditures  re- 

presented  ?     (N.  2,  p.  323.)  •  j  ^   9      /isi  o  «  Q9Q  ^ 

4.  Where  are  the  aggregates  of  the  Operating  Receipts  carried  to  /     C^N-  ^>  P-  ^^^O 

5.  What  entries  originate  upon  the  Journal?     (N.  1,  p.  331.) 

6.  Who  is  supposed  to  keep  the  books  of  the  company/     (iN.  A  P- ^^^      „oi  >, 
7    How  does  the  Secretary  keep  his  account  with  the  Treasurer?     (N- ^,  P-  ^^^■) 

8.  What  is  done  after  the  contents  of  the  Journal  are  posted  into  the  General  Ledger? 

9    What'acco^unts  are  to  be  opened  preparatory  to  closing  the  Ledger  ?     (N.  4,  p.  331.) 
10.  Where  are  the  closing  entries  of  the  Ledger  made ?     (IN.  5,  p.  661.) 

II.  How  is  the  total  gain  divided?     (N.  6,  p.  331.) 

12  What  accounts  are  kept  in  the  Stock  Ledger  r     {IS.  1,1^.  66i.) 

13  How  are  transfers  of  stock  made?     (N.  1,  P- ^^'^•) 

14.  When  is  the  transfer  of  stock  prohibited?     (N.  1.  p.  ^5*57.)  ,        ^;\^a  ^^  tho 

15.  If  a  sale  of  stock  is  made  while  the  transfer  booK  is  closed,  who  is  entitled  to  the 

16.  Wh^a^m^f be  do^e  when^you  take  a  Trial  Balance  off  the  General  Ledger?     (N.  2, 

17.  What^must  the  aggregate  amount  of  the  credits  of  the  Stock  Ledger  agree  with  ? 

18.  When  are  the  accounts  in  this  Ledger  closed?     (N.  3,  p.  337.) 

19.  When  is  the  General  Ledger  opened?     (N.  1,  p.  341.)  1.1  »?    /M  9  r.  ^±^  ^ 
20    Is  there  any  difference  between  "Bonds  Payable- and"  Bills  Payabe   ?    (N.  2  p.  341  ) 

21.  What  do  the  accounts  closing  into  "Construction  &  Equipment"  represent?     (N.  3, 

22.  What  is  the  nature  of  Operating  Accounts?     (N.  4,  p.  341.) 

23.  Into  what  account  do  they  close?     (N-  4,  p.  341.)  fxr   a   r.  qil  ^ 

24.  Are  "Dividend"  and  "Surplus  Capital"  effects,  or  liabilities?     (N.  4,  p.^41.) 

25    What  is  done  with  the  accounts  closed  into  Construction  &  Equipment  after  the  books 

are  closed?     (N.  5,  p.  341.) 
26.  What  is  "  Surplus  Capital"  ?     (N.  7,  p.  341.) 


DUFF'S  BOOK-KEEPING. 

PRIVATE  BANKER'S  ACCOUNTS. 


II 


1867. 


349 


348 


PEELIMINARY  EEMARKS. 

Although  the  principles  of  Bank  Accounts  have  been  ftdly  illustrated  in  our  set  of 
National  Bank  Accounts,  the  business  of  the  Private  Bauker  differs  in  so  many  particulars 
from  that  of  the  Joint  Stock  Company  that  we  think  the  following  set  of  books,  expressly 
adapted  to  this  particular  business,  will  prove  useful  in  perfecting  the  business  man's  edu- 
cation. 


350 


CASH  BOOK, 


PRIVATE  BANKER'S  ACCOUNTS. 


NOVEMBER,  1867. 


1.  Bankers  generally  make  this  book  perform  the  oflGice  of  Cash  Book  and  Journal.    The 
arginal  pages  indicate  the  direct  posts  to  the  General  Ledger,  which  is  made  up  from  this 

book. 

2.  The  aggregate  monthly  receipts  and  payments  are  posted  from  the'  right-hand  money 

colli  nins. 


o51 


111 


1      Db. 


O^SH 


1867. 

Nov. 


8 


10 
16 

23 


30 


2 :  To  P.  Duff 

II  Wm.  Hav 

//  W.Wood 

//  Depositors 

//  Discount 

//  Depositors 

//  Discount 

//  Depositors 

//  Discount 

//  Depositors 

'/  Discount 

//  Depositors 
//        do. 

//  Discount 

'/  Depositors 

'/  Discount 

'/  Bills  Keceivable 

II  Depositors 

//  Bills  Receivable 

II  Discount 


Eec'd  in  full  for  his  capital 


// 
// 
// 
u 

» 

» 

» 
If 
M 
It 

» 


II 


II 
II 


II 
II 


II 
If 


II 
II 


II 
II 


Dec. 


4 

7 

ii4 


21 
28 


29 
30 

31 


To  Discount 
Depositors 
Discount 
Depositors 
Bills  Receivable 
do.  do. 

Discount 
Depositors 
Discount 
Depositors 
Discount 
Bills  Receivable 
Discount 
Depositors 
Discount 
Depositors 
Discount 

Duff  Brothers  &  Co. 
Thomas  Thompson  & 
Bills  Receivable 
do.        do. 


Balance 


1 
1 
1 
P.  1    2 

1    3 

1 

1 

1 

1 

1 

1 

1 

1 

1 

1 

1 


per  Deposit  Register 
Discount  Book 
Deposit  Register 
Discount  Book 
Deposit  Register 
Discount  Book 
Deposit  Register 
Discount  Book 
Deposit  Register 

do.  do. 

Discount  Book 
Deposit  Register 
Discount  Book 
for  Discount  No.  3 
per  Deposit  Register 
for  Discount  No.  2 
per  Discount  Book 


Balance 

Rec'd  per  Discount  Book  2 

//  Deposit  Register               2 

«r  Discount  Book                  2 

II  Deposit  Register               2 

II  for  Discount  No.  4  • 

II  II        No.  5 

//  per  Discount  Book                  2 

II  Deposit  Register               2 

If  Discount  Book                  2 

M  Deposit  Register               2 

n  Discount  Book                   2 

//  for  Discounts  No.  8, 9,  and  10 

//  per  Discount  Book                  2 

u  Deposit  Register               2 

w  Discount  Book                 2 

n  Deposit  Register               2 

//  Discount  Book                  2 

//  for  draft  on  them 

Co.    //  "      II    do. 

a  Discount  No.  7 

»  U               II     1 


2 
3 
2 
3 
2 
3 
2 
2 
3 
2 
3 
2 
2 
2 


3 
2 
3 
2 
2 
2 

|3 
12 
!3 
2 
3 
2 
3 
2 
3 
2 
3 
3 
3 
2 
2 


20000 

10000 ! 

10000 ; 

2200  i 
158  02 
1900 

69 
2200! 

25  1 
3260! 

39f0 
3049' 
5985 

62  47 
2900 
154  57 
5600 
6630 
4000 
110  1 


78343 


)6 


78343  66 


26533  66 

1260  ; 

8815' 
75  50 

9960 

2800 

4200 

2618  ^0 

2700  I 
80  80 

1410 
143  $4 

3600  i 
306  I 
890  i 
200  I 
13910  I 
113  84 

1000 

6000 

3800 

5000 


68883 


95416  H 


6737  74 


iLCCOUNT. 


Cb.   1 


)8 


1867. 

Nov. 

2 

By  Depositors 
//    Bills  Receivable 

Pd.  per  Check  Register 
//    for  Notes  1,  2,  3,  and  4 

1 

2 

2 

1000 
17400 

//    Discount 

II    per  Discount  Book 

3 

20 

7 

//    Depositors 

n         Check  Register 

2 

675 

//    Discount 

//          Discount  Book 

3 

37 

8 

//    Depositors 

a          Check  Register 

2 

1600 

//    Discount 

n          Discount  Book 

•«• 

3 

12 

9 

II    Depositors 

//    Bills  Receivable 

//          Check  Register 
II    for  Note  5 

2 
2 

2400 
4200 

II    Discount 

'/    per  Discount  Book 

3 

15 

10 

//    Depositors 

//          Check  Register 

1     2 

1100 

11 

//    Bills  Receivable 

//   for  Note  6                    • 

2i 

1600 

16 

II    Depositors 

//    per  Check  Register 

2i 

i    1300 

//    Discount 

//          Discount  Book 

3* 

75 

23 

II    Depositors 

II   Bills  Receivable 

n          Check  Register 

//    for  Notes  7,  8,  9,  and  10 

2 
2 

7920 
7400 

II    Discount 

'/    per  Discount  Book 

3 

105 

30 

//    Depositors 

II         Check  Register 

2 

4920 

II    Discount 

n          Discount  Book 

3 

31 

51810 

4 

Balance  carried  down 
Pd.  per  Check  Register 

2 

2 

26533 

66 
66 

78343 

Dec. 

By  Depositors 

560 

//    Discount 

//          Discount  Book 

1 

3 

15 

7 

II    Depositors 

1/          Check  Register 

2 

2 

360 

II    Discount 

II          Discount  Book 

2 

3 

24 

//    Bills  Receivable 

//    for  Note  11 

2 

3800 

14 

//    Depositors 

II    Bills  Receivable 

II    per  Check  Register 

II    for  Notes  12,  13,  and  14 

2 

2 
2 

430 
4500 

21 

II    Depositors 

'/    per  Check  Register 

2 

2 

2850 

//    Discount 

II          Discount  Book 

2 

3 

56 

//    Bills  Receivable 

//    for  Notes  15  and  16 

2 

5600 

28 

II    Depositors 

'/    per  Check  Register 

2 

2 

3640 

• 

II    Discount 

//"  Bills  Receivable 

II    Duff  Brothers  &  Co. 

n          Discount  Book 

//    for  Notes  17,  18,  19,  and  20 

II    Retaining  n/p  of  Note  No.  10 

2 

3 
2 
3 

12 

12600 

•  1188 

29 

//    Bills  Receivable 

//    for  Notes  21  and  22 

2 

24000 

30 

II     do.        do. 
II   R.  P.  Duff 

II     II       II     23,  24,  and  25 

II   Retaining  n/p  of  Note  No.  19 

2 
4 

15000 
130 

31 

II    Depositors 

//    per  Check  Register 

2 

2 

6700 

II    Discount 

II          Discount  Book 

2 

3 

50 

//    Bills  Receivable 

//    forNotesNo.26,27,28,29,30,«&31 

2 

1254 

II   T.  F.  Shephard 

II   Retaining  n/p  of  Note  No.  10 

4 

960 

II   T.  Thompson  &  Co. 

II         do.             "        '/       II      1 
Balance  carried  down 

t4 

3 

4950 
6737 

74 

88679 

M 

95416 

X 


353 


PRIVATE    BA-ISTKER'S 
PITTSBURGH,  Nov.  2, 1867. 


1867. 

Nov. 


Wilson,  Childs  &  Co 
R.  S.  Carson 
W.  J.  Murphy 
Wm.  Payne 


C.  B.  1 


Nov. 


7  !  Wm.  Payne 
J.  R.  Weldin 
R.  Banks 
Jas.  Wood 


C.B.I 


Nov.  I  8,i  Chas.  Page 
'      '  W.  Stoner 
R.  S.  Carson 
R.  Banks 


C.B.I 


Nov.     9    Wm.  Payne 
R.  S.  Carson 
I         R.  Banks 
J.  Pillow 


Note  2 
8 
6 


C.  B.  1 


Nov.  10 


J.  R.  Weldin 
W.  J.  Murphy 
Robt.  Knox 
Jas.  Watt 
Greo.  Draper 


Note  5 
4     ' 


C.B.I 


Nov.  16    Jas.  Wood 
W.  Hay 

John  Hatch 
White  &  Edwards 


Note  7 


C.  B.  1 


Nov.  23    Chas.  Page 

Jones  &  Hatch 
I      !   Rich  &  Gray 
I      I   Hay  &  Wood 
Wm.  Payne 
Certificate  of  Deposit 


No.  1 


C.B.I 


354 


2 

2 
2 
1 
2 

600 

1900 

( 

1 

700 

240 

260 

1000 

1 
1 
2 

3 

2200 

300 

260 

1000 

1700 

3260 


2 
1 
3 
3 
3 


600 
500 
749 
450 
750 

3049 


2 
3 
4 
4 


2 
4 
4 
5 
1 
5 


2000 

1475 

760 

1750 

5985 


450 
750 
460 
500 
40 
700 

2900 


DEPOSIT    REQISTER. 

PITTSBURGH,  Nov.  30, 1867. 


1867. 

Nov. 


Dec. 


Dec. 


!l 


30 


Dec. 


Dec. 


Dec. 


Dec. 


14 


Chas.  Page 
Wm.  Hay 
R.  S.  Carson 
Wm.  Stoner 
Hay  &  Wood 
Certificate  of  Deposit 


Wilson,  Childs  &  Co. 
James  Pillow 
Hay  &  Wood 


James  Watt 
R.  Knox 
Jones  &  Hatch 
Certificate  of  Deposit 


21 ,  Geo.  Draper 
Wm.  Stoner 


28   Jno.  Hatch 

White  &  Edwards 
Rich  &  Gray 
Hay  &  Wood 


30   Jones  &  Hatch 

W.  Payne 

R.  Martin 


31   Wm.  Hay 
R.  Banks 
H.  P.  Ford  &  Co. 
Wilson,  Childs  &  Co. 
W.  Stoner 
W.  Payne 


Notes 


No.  2 
//  3 
//    4 


C.  B.  1 


Note    1 
12 


C.  B.  1 


Note  15 
14 


No.  5 


C.B.I 


Note  11 


C.B.I 


Note  16 
17 
18 
20 

C.B.I 

Note  19 

C.B.I 

Note  10 


C.B.I 


1.  In  this  book  enter  all  receipts  of  money  received  on  deposit  account  and  for 
Certificates  of  Deposit.  The  daily  amounts  are  carried  to  the  Cash  Book,  and  the 
particulars  are  posted  into  the  Depositors'  Ledger. 

355  '        "™ 


2  , 

470 

3 

1000 

1 

1400 

2 

560 

5 

700 

5  ' 

1000 

5 

600 

5 

900 

1 

3 
5 


3 

2 


6630 

400 

7800 

615 

8815 


3  3000 

3  ,  3960 

4  i  1000 

5  i'  2000 

9960 


2600 
100 

2700 


4 

200 

4 

150  , 

4 

500  ' 

5 

560 

1410 

4  130 
1    360 

5  400 

890 


3 

960 

2 

550 

5 

600 

1 

3200 

2 

4800 

1 

3800 

13910 


1867. 

Nov. 


PITTSBURGH,  Nov.  2, 1867. 


W.  Payne 

Wilson,  Childs  &  Co. 

W.  J.  Murphy 


R.  S.  Carson 
Robt.  Banks 
Jas.  Wood 


J.  R.  Weldin 
C.  Page 
W.  Payne 


R.  S.  Carson 
R.  Banks 
W.  Stoner 
James  Pillow 


IC 


Wm.  Payne 
W.  J.  Murphy 
Robt.  Knox 


U 


Jas.  Watt 
Geo.  Draper 
Jas.  Wood 
Wm.  Hay 


2S 


Jones  &  Hatch 
White  &  Edwards 
John  Hatch 
Rich  &  Gray 
Hay  &  Wood 
C.  Page 


3d    John  Hatch 

White  &  Edwards 
Wm.  Payne 
Wilson,  Childs  &  Co. 
R  S.  Carson 


C.  B.  1 


C.  B.  1 


C.  B.  1 


Note  6.  Collection  Register 


C.  B.  1 


C.  B.  1 


C.  B.  1 

Certificate  of  Deposit  No.  1 

Note  3  Discounted 
C.B.I 


Certificate  of  Deposit  No.  2 
¥  «r  w     3 


C.  B.  1 


1.  This  book  records  the  payment  of  all  Checks  and  Certificates  of  Deposit. 
Transfer  the  amounts  daily  to  the  Cash  Book,  and  post  the  particulars  to  the  De- 
posit Ledger. 


Job 


2 
2 


1 
2 
2 
3 


3 
3 
2 
3 


4 
4 
4 
4 
5 
2 


4 
4 
1 
1 


400 
400 
200 


1000 


375 
200 
100 


675 


700 
600 
300 


1600 


1000 
600 
200 
600 


2400 


200 
700 
200 


1100 


400 
200 
500 
200 


1300 


400 
800 
700 
20 
400 
5600 


7920 


840 
1000 

600 
1000 
1480 


4920 


OHEOK    REGISTER. 
PITTSBURGH,  Dec.  4,  1867. 


1867. 

Dec. 


-14 


Jl 


;58 


;{i 


Hay  &  Wood 
R.  S.  Carson 


C.  B.  1 


Jones  &  Hatch 
Wm.  Payne 


C.  B.  1 


R.  Martin 
Rich  &  Gray 


C.  B.  1 


Wm.  Hay 

Wilson,  Childs  &  Co. 

R.  Knox 

Certificate  of  Deposit  No.  5 


C.B.I 


R.  Knox 
Jones  &  Hatch 
White  &  Edwards 
Certificate  of  Deposit  No.  3 


C.B.I 


Wm.  Stoner 
Wilson,  Childs  &  Co. 

do.        do. 
Certificate  of  Deposit  No.  1 


C.  B.  1 


357 


5 
1 


4 
1 


5 
4 


3 
1 
3 
5 


3 
4 
4 
5 


2 
1 
1 
5 


400 
160 

560 


200 
160 

360 


300 

130 

430 


500 

200 

150 

2000 

2850 


400 

240 

2400 

600 

3640 


5000 
700 
300 

700 

6700 


1 1 


i 


PRIVATE    Bi^NKER'S 
NOTES  &  BILLS 


When  Rec'd. 


Discounted  for. 


1887.  i 

NoY. ;    2  j  Jno.  Scott 
K.  Banks 
S.  White 
I  S.  Smith 
9'  T.  Rhodes 
11    Good  &  Little 
23    Moss  &  Howard 
Rhodes  &  Verner 
G.  R.  White 
W.  Payne 
Dec.      7    J.  Taylor 
14    S.  Barrett 
I       I  D.  A.  Carston 
Jno.  Hawkins 
21    Hay  &  Wood 
J.  Watt 

28  i  J.  Pillow 
R.  Banks 
S.  Simpson 
W.  Wells 

29  R.  Smith 
E.  Waltby 

30  Thos.  Anderson 
D.  Fox 
W.  Langdon 

31  B.  F.  Swan 
J.  M.  Smith 
R.  Root 
Jno.  Black 
R.  P.  Murry 
J.  Higgins 


Dbaweb. 


Simon  Payne 
Thos.  Gains 
Chas.  Page 
W.  Hay 
S.  Barrett 
S.  Wise 
R.  Goodwill 
M.  Thompson 
A.  Mason 
C.  Ralston 
Jno.  Eastman 
W.  Hare 
Simon  Payne 
Hay  &  Wood 
Jas.  May 
Rogers  &  Co. 
Ragan  &  Morse 
T.  A.  Craig 
M.  Love 
C.  Page 
J.  Brown 
Adrian  &  Co. 
C.  Rhea 
W.  F.  Smith 
W.  Langdon 
L.  C.  Donnell 
G.  W.  Holmes 
J.  Hoag 
S.  Green 
L.  Bradley 
J.  Vinsonhaler 


On  Whom  Drawn. 


Ik  whose  Favor. 


Wm.  Young 
J.  S.  Ward 


T.  C.  Duff 


E.  Lynch 


Jno.  Kerr 
Wm.  Cook 
G.  L.  Ryder 


D.  Hall 

A.  D.  Walker 


Jno.  Jones 
S.  Myers 
S.  White 
Good  &  Bacon 
T.  Rhodes 
J.  S.  Duncan 
Moss  &  Howard 
Rhodes  &  Vomer 
G.  R.  White 
S.  Stevens 
E.  D.  Jones 
S.  Barrett 

D.  A.  Carston 
Jno.  Hawkins 
Hay  &  Wood 
J.  Dally 

J.  Pillow 
R.  Banks 
S.  Simpson 
W.  Wells 
Henry  Rigg 

E.  Waltby 

C.  Gipner 
J.  C.  Young 
Ourselves 

S.  J.  Grant 
R.  B.  Wilson 
M.  Die 

D.  White 
V.  B.  Smith 
H.  S.  Kerr 


1.  Enter  all  discounted  paper  as  abovo ;  the  Discounts  in  the  Discount  Book,  the  payments  in  the  Cash  Book,  and  the  day 
of  maturity  in  the  Tickler. 

358 


BILL    BOOK. 
DISCOUNTED. 


Where  Payable.     No. 


Date. 


j 

1 

1867. 

1 

Cnicago     ' 

1 

Sept. 

25 

City 

2 

28 

// 

3 

Oct. 

21 

Philadelphia 

4 

Nov. 

7 

City 

5 

Sept. 

7 

// 

6 

July 

11 

It 

7!; 

18 

It 

8i 

June 

25 

II 

9 

Sept. 

26 

New  York 

10 

Nov. 

18 

TniE. 


When  Due. 


Amount. 


Memoranda. 


City 

» 

w 

It 

St.  Louis 

City 

It     ' 

u 

,» 

It 

Chicago 

City 

New  Orleans 

City 

New  York 

City 

II 

Cincinnati 

City 
St.  Louis 


11    Aug.      1 
!12!iJuly    10 

13 'Sept. 

14  II 

15  Dec. 
16 


17 

18 
19 


1 

28 
1 

20 

15 
5 

20 


20  1  Oct.    15 

21  liDec.      5 


22 
2a 
24 

*25  ii 

26  Nov. 

27  Dec. 
28 


29 
30 
31  .Sept.   15 


20 
15 

20 

3 

1 

30 

'   3 

15 


3  months 
60  days 
30     // 
1  month 
3  months 
5       '/ 

5  // 

6  *i' 
90  days 
30     // 

6  months 

6       // 

5       // 

4 

3 

3 

90  days 

60     // 

3  months 

5       // 

60  days 
||90     // 

3  months 

90  days 

3  months 

90  days 

3  months 
1 1 60  days 

3  months 

3 

6 


1867. 

Dec. 
Nov. 

Dec. 


// 
If 
If 


1868 

Feb. 
Jan. 
Feb. 
Jan. 
Mar. 


Feb. 
Mar. 

Feb. 
Mar. 


28  5000 
30  4000 
23  5600 
10  2800 
4200 


14 


1600 


21     3800 


Feb. 
Mar. 


// 


// 


6001 
1800 
1200 

3800 
800 

3000 
700 

1600 


28 
28 
21 

4 
113 

4 
31 

4 

23  4000 

18  2000 

6  4000 

23  3000 

18  3600 

6  4000 

23  20000 

18  5000 

If  4000 

23  6000 


Paid  Dec.  31 

//     Nov.  30 

//        II     23 

tf     Dec.  14 
Protested  Dec.  10, pd.  Dec.l4 
n       Dec.  14 
//        Dec.  21,  pd.  Dec  31 
Paid  Dec.  28 

If     Dec.  28 

//  Dec.  28 


4 
4 
3 
6 

18 
18 


225 
140 
170 
360 
125 
234 


359 


PRIVATE   BANKER'S 
NOTES  &  BILLS 


Wheic  KnrD. 

Collected  for. 

Drawer. 

On  Whom  Drawn. 

Ix  WHOSE  Favor. 

1867. 

Nov. 

2 

Wilson,  Childs&  Co 

Jas.  Moultrie 

H.  Jones 

r 

S.  Stinson 

W.  Payne 

S.  Girty 

J.  Gray 

J.  Shepler 

R.  S.  Carson 

J.  S.  Duncan 

R.  S.  Carson 

W.  J.  Murphy 

S.  Stevens 

Thos.  McCabe 

J.  R.  Weldin 

S.  Crites 

F.  Wallace 

J.  R.  Weldin 

3 

R.  Banks 

R.  Carson 

Thos.  Smith 

7 

Jas.  Woods 

S.  R.  Moultrie 

Jas.  Woods 

10 

C.  Page 

Jno.  Easton 

C.  JfcLoo'an 

R.  Sanders 

15 

W.  Stoner 

W.  Roy 

J.  Getty 

20 

W.  Hay 

J.  Dalton 

A.  Martin 

R.  Jones 

30 

Geo.  Draper 

Ditto  &  Knox 

Geo.  Draper 

Bee 

1 

Jas.  Pillow 

Stein  &  Dawson 

Jas.  Pillow 

4 

S.  Barrett 

W.  Hare 

S.  Barrett 

R.  Knox 

J.  Moultrie 

Jno.  Milton 

R.  Good 

J.  Watt 

S.  Barrett 

F.  Garrett 

21 

Jno.  Hatch 

R.  Knox 

• 

Jno.  Hatch 

White  &  Edwards 

Jones  &  Langdon 

White  &  Edwards 

Rich  &  Gray 

S.  Girty 

Rich  &  Gray 

Jones  &  Hatch 

Brady  &  "Stein 

S.  Grant 

T.  Fairbanks 

Hay  &  Wood 

R.  Roy 

J.  Goodall 

28 

Ross  &  Childs 

J.  Riggs 

S.  Lowry 

30 

R.  Banks 

Thos.  King 

F.  Johnson 

R.  Banks 

1.  lliiB  book 

records  all  paper  received  1 

br  collection.    Record  its  d 

latnrity  at  the  same  time 

on  the  Tickler.    When  col- 

Serted,  pass  it  to  the  credit  of  the  owner  on  the  Deposit  Register. 


PRIVATE    BANKER'S 
NOTES  &  BIH£ 


When. 

Remitted  to. 

Place. 

Drawer. 

In  whose  Favor 

Nov. 

2 

S.  Ripley 

Philadelphia 

S.  Girty 

J.  Shepler 

T.  Thompson  &  Co. 

Chicago 

S.  Crites 

J.  R.  Weldin 

13 

Duff  Bros.  &  Co. 

New  York 

Jno.  Easton 

R.  Sanders 

25 

R.  P.  Duff 

Cincinnati 

Jas.  Moultrie 

S.  Stinson 

Dec. 

1 

S.  Ripley 

Philadelphia 

W.  Hay 

Good  &  Bacon 

4 

Geo.  McCallum 

St.  Louis 

Jas.  Moultrie 

R.  Good 

15 

Duff  Bros.  &  Co. 

New  York 

C.  Ralston 

S.  Stevens 

20 

T.  F.  Shepard  . 

New  Orleans 

J.  Dalton 

R.  Jones 

R.  P.  Duff 

Cincinnati 

Brady  &  Stein 

T.  Fairbanks 

186B. 

T.  Thompson  &  Co. 

Chicago 

Simon  Payne 

Jno.  Jones 

Jan. 

25 

Duff  Bros.  &  Co. 

New  York 

Thos.  King 

R.  Banks 

do 

» 

L.  C.  Donnell 

S.  J.  Grant 

Feb. 

25 

T.  Thompson  &  Co. 

Chicago 

Adrian  &  Co. 

E.  Waltby 

Mar. 

1 

R.  P.  Duff 

Cincinnati 

Samuel  Green 

D.  White 

10 

T.  F.  Shepard 

New  Orleans 

W.  F.  Smith 

J.  C.  Young 

G.  McCallum 

St.  Louis 

J.  Vinsonhaler 

H.  S.  Kerr 

15 

do 

// 

Rogers  &  Co. 

J.  Dally 

2.  Ten  or  fifteen  days  before  the  matnrity  of  foreign  paper,  forward  it  to  your  agent,  transferring  it  from  the  Tickler  to  this 
book.  When  he  notifies  you  of  its  payment,  debit  him ;  or,  if  he  remits  the  proceeds,  enter  it  to  credit  of  the  owner  on 
Deposit  Register. 

360 


OOLI.EOTION    HEQISTER. 

RECEIVED  FOR  COLLECTION. 


Where  Payable. 

No. 

Date. 

TUfE. 

When  Dot. 

1 

Amount. 

Mexoransa. 

1867. 

1867.     ! 

1 

Cincinnati 

1 

Oct. 

2 

60  days 

Dec. 

4. 

400 

Paid  Dec.  7 

Philadelphia 

2 

5 

30     // 

Nov. 

7 

300 

Nov.  9 

City 

3 

6 

1  month 

9 

260 

9 

If 

4 

Aug. 

7 

3  months 

10 

500 

10 

Chicago 

5 

Sept. 

5 

2      // 

8 

600 

10 

City 

6 

July 

6 

4      // 

9 

1000 

9 

// 

7 

Sept. 

14 

60  days 

16 

2000 

16 

New  York 

8 

Aug. 

20 

3  months 

23 

470 

30 

City 

9 

29 

90  days 

1 

30 

560 

Ret'd  Protested  Nov.  30 

New  Orleans 

10 

July 

25 

5  months 

Dec. 

28 

980 

Paid  Dec.  31,  less  320 

City 

11 

18 

5      If        i 

21 

2600 

21 

/; 

12 

Nov. 

4 

30  days      j 

;  1868. 

7 

7800 

7 

«f 

13 

July 

10 

6  months 

Jan. 

13 

100 

St.  Louis 

14 

Oct. 

12 

60  days 

1867. 

Dec. 

14 

4000 

1 

Paid  Dec.  14,  less  $40 

City 

15 

11 

12  months 

3000 

'■ 

14 

0 

16 

Feb. 

25 

110        B 

28 

200 

28 

n 

17 

!10     n 

150 

28 

It 

18 

Nov. 

25 

1       If 

500 

28 

Cincinnati 

19 

Sept 

26 

190  days 

140 

30,  less  $10 

City 

20 

Oct. 

26  i  60  days 

1868. 

560 

28 

u 

21 

30   |90    // 

Jan. 

31 

800 
3000 

New  York 

22 

28   i3  months 

1 

FOREiaN"   COLLEOTIOI?^   REOISTER. 

REMITTED  FOR  COLLECTION. 


Collected  for. 

No. 

Date. 

Dm. 

Amount. 

Memoranda. 

1867. 

1867. 

W.  Payne 

2 

Oct. 

5 

Nov. 

7 

300 

Received  Nov.  9 

J.  R.  Weldin 

5 

Sept. 

5 

8 

600 

Rec'd 

10 

C.  Page 

8 

Aug. 

20 

23 

470 

Rec'd 

30 

Wilson,  Childs  &  Co. 

1 

Oct. 

2 

Dec. 

4 

400 

Rec'd  Dec. 

7 

Ourselves 

4 

Nov. 

7 

1 

10 

.2800 

Rec'd 

14 

R.  Knox 

14 

Oct. 

12 

14 

4000 

Rec'd 

14,  less  HO 

Ourselves 

10 

Nov. 

18 

21 

1200 

Rec'd 

28,  less  812 

W.  Hay 

10 

July 

25 

28 

980 

Rec'd 

31,  less  820 

Jones  &  Hatch 

19 

Sept. 

26 

140 

Rec'd 

30,  less  810 

Ourselves 

1 

1 

25 

1868. 

5000 

Rec'd 

31,  less  850 

R.  Banks 

22 

Oct. 

28 

Jan. 

31 

3000 

Ourselves 

26 

Nov. 

3 

Feb. 

4 

j    225 
20000 

do 

22 

Dec. 

20 

Mar. 

23 

do 

29 

3 

6 

360 

do 

24 

15 

18 

4000 

do 

31 

Sept. 

15 

18 

234 

do 

16 

Dec. 

20 

23 

4000 

861 


PRIVATE   BANKER'S 


DISCOUNT   BOOK. 


1867.    ! 

Nov.  2!'  Note  1 
u  2 
u  3 
// 


EECEIVED. 


4 
Exchange 


C.B.I 


Nov.      7    Exchange 


1 


C.B.I 


Nov.      8    Exchange 


C.B.I 


Nov.      9    Note  5 

Exchange 

C.B.I 


Nov.    16 


Note  6 
Exchange 
// 


C.B.I 


Nov.    23    Note  7 

II    "     ^ 

'      I'    //     9 

i      I     //    10 
•  i  Exchange 


u 


C.B.I 


Nov.    30    Exchange 


C.B.I 


DISCOUNTS. 


!     1867. 

46  67  i  Nov. 
18  67 
19-60 
17  73 
45 
10 
125 

158  92 


28 

17 

8 

21 


69 


10 

7 
3 
5 

^1 


2170 

18 


Nov. 


Nov.  ;   8 


Nov.  I   9 


39  70 


747 
45 
10 


62  47 


16  47 
35 
10 
5  60 
56  50 
31 


Nov.    16 


PAID. 

Exchange 
// 

H 
IT 

C.B.I 


Exchange 


u 

H 
H 


C.B.I 


Exchange 


u 

n 


C.B.I 


Exchange 


u 


C.B.I 


Exchange 


C.B.I 


Nov.   "23    Exchange 


C.B.I 


154 

57 

40 
17 
22 
31 

110 

Nov.    30    Exchange 


Dec. 


It 

K 
If 
If 


C.B.I 


Exchange 


C.B.I 


10 
3 
5 
2 


20 


25 
2 


50 


4  75 
125 
3  50 


37 


3 
4 
5 


12 


5 
10 


15 


45 
17 
•2 
11 


75 


25 
37 
22 
21 


105 


10 
3 


50 


1150 
4  75 
125 


31 


10 
2 
3 


15 


1.  This  is  a  record  of  all  discounta  receired  and  paid  and  all  sums  received  and  paid  for  exchanging  money.    The  amounts 
are  daily  passed  into  the  Cash  Book. 

362 


1867. 

Dec. 


Dec. 


Dec. 


EECEIVED. 


I  Exchange 


14 


C.B.I 


Dec.    21 


Note  11 
Exchange 


C.B.I 


Exchange 
Note  12 
Exchange 
Note  13 
Exchange 
Note  14 
Exchange 


// 


C.  B.  1 


Dec.  i  28 


Dec.    29 


Note  15 
//    16 

C.B.I 


Dec.    30 


Dec.   31 


Note  17 

'  //    18 

//    19 

//    20 


C.B.I 


Note  21 
n     22 

C.B.I 


Note  23 
//  24 
n    25 

C.B.I 

Note  26 

27 

28 

29 

30 
Draft  1 
Note  31 
Draft  2 

C.B.I 


DISCOUNTS. 


625 
635 

1    1 

1867. 

Dec. 

7 

1260 

37 

37 

25  13 
13 


PAID. 

Exchange 


C.B.I 


75  50 


40 


525 

I        ^ 
'    522 

i      26| 

504' 
I        5  60 

526 

505  60 


Dec.    21    Exchange 
II 


Dec.    28 


IP 
u 


C.B.I 


F.  C.  R.,  Note  10 
C.B.I 


2618  60 


1947 
6133 


80  80 


26  67 
26  67 
42  50 

48, 


143  84 


Dec.   31    F.  C.  R.,  Notel 

C.  B.  1 


26 
280 

306 


65 
52! 

83 

200 


1131 
147 
17.6 

4  20  ! 

160 
10 

3 
90 


113  34 


363 


3 

T 
4' 
10 


24 

10 

3 

15 

^ 

56 

12 

50 

I 


364 


TICKLER, 

PRIVATE  BANKER'S  ACCOUNTS, 


NOVEMBER,  1867. 

1.  In  business  there  is  generally  a  whole  page  of  this  book  appropriated  for  each  day  of 
the  month.  >  And  some  bankers  keep  one  Tickler  for  discounted  paper,  and  another  for 
collections.     But  we  think  the  following  form  will  serve  without  any  inconvenience  for 

both  classes  of  paper. 

2.  As  the  notes  are  paid,  they  pass  into  the  Cash  Book ;  or,  if  collections,  to  the  Deposit 
Eegister.  Protested  notes,  like  No.  9,  are  returned  to  the  owner,  who  must  pay  any  ex- 
penses that  are  incurred. 


365 


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ger  &  Co. 
Love 

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rH  rH  (M  C^ 

DEPOSITOR'S   LEDGER, 

PRIVATE   BANKER'S   ACCOUNTS. 


NOVEMBER,  1867. 


1.  The  ne\^  form  which  we  gave  of  this  Ledger  in  our  set  of  National  Bank  accounb* 
will  also  be  found  convenient  for  the  private  banker's  business.  But  we  retain  the  old  form 
in  this  set,  leaving  it  for  the  accountant  to  choose  for  himself. 

2.  There  are  no  accounts  kept  in  this  Ledger  but  those  of  the  depositors  and  certificates 
of  deposit.  It  is  composed  wholly  from  the  Deposit  and  Check  Registers.  The  account* 
are  never  balanced  except  when  the  customer  hands  in  his  pass-book  to  be  balanced. 

3.  The  aggregate  balances  of  this  Ledger  must  agree  with  the  balance  of  the  Depositor's 
account  in  the  General  Ledger. 


361) 


m 


868 


1      Dr. 


WILSON, 


CHILDS  &  CO.       Or. 


1807. 

Nov. 
Dec. 


50  // 
21  I    ff 

51  ^ 


Cash 


Balance 


1867. 

1 

400 

Nov. 

2 

1 

1000 

Dec. 

7 

2 

200 

31 

2 

700 

2 

300 

1400 

Dec. 

51 

4000 

Cash 
Note  1 
Cash 


Balance 


1 

2 
2 

1 

400 

400 

3200 

4000 

1400 

R  S. 

CARSON. 

iser. 

18«7. 

Nov. 

7 

Cash 

1 

375 

Nov. 

2  Cash 

1 

600 

9 

Note  6 

1 

1000 

8     // 

1 

260 

50 

Cash 

1 

1480 

9  Note  3 

1 

260 

Dec. 

4 

u 

2 

160 

50  Cash 

2 

1400 

18€7. 

xVov. 
Dec. 


W.  J. 


MURPHY. 


31 


Cash 
u 

Balance 


1867. 

1 

200 

Nov. 

2 

1 

700 

^0 

100 

Dec. 

51 

1000 

Cash 
Note  4 


Balance 


WILLIAM 


PAYNE. 


1867. 

Nov. 


Dee. 


2 

8 

to 

50 
7 
31 


Cash 


// 


Certif.  ofDep.  No.3 
Cash 
Balance 


400 
300 
200 
600 
160 
3840 


5500 


1867. 

Nov.  2 
7 
9 
23 

Dec.  feo 
61 


Dec.   81 


Cash 

II 
Note  2 
Cash 

II 

11 


Balance 


1 

500 

1 

500 

1000 

100 

1 

700 

1 

300 

1 

300 

1 

40 

2 

360 

2 

3800 

5500 

3840 

370 


y 


Dr. 


«!•  B. 


WELDIN. 


1867, 

Nov.  I  8 
Dec.   31 


Cash 

Balance 


700 

500 


1200 


1867. 

Nov. 


7 
HO 


Dec.   81 


Cash 
Note  5 


Balance 


ROBERT 


BANES. 


1867. 

Nov. 
Dec. 


7 

9 

31 


Cash 
u 

Balance 


1 

200 

1867. 

Nov. 

7 

1 

600 

8 

2150 

Dec. 
Dec. 

9 
31 

2950 

Cash 

II 
Note  6 
Cash 


Balance 


JAMES 


WOOD. 


1867. 

Nov. 


7 
16 


Cash 
// 


1867. 

1 

100 

Nov. 

7 

1 

,  500 

16 

Cash 
Note  7 


CHARLES 


PAGE. 


1867. 

Nov. 


8 
23 


Dec. 


31 


Cash 
Note  3 


Balance 


600 
5600 


6200 


4580 


1867. 

Nov. 


Dec. 


8   Cash 
23      // 

30  Note  8 


31 


Balance 


WILLIAM 


STONER. 


1867. 

Nov. 
Dec. 


9   Cash 
3l'     II 

31   Balance 


1    1887. 

1 

200 

!Nov. 

8 

2 

5000 

i 

30 

500 

Dec. 
i  Dec. 

21 
31 

31 

5700 

Cash 


// 
// 


Balance 


371 


Cr. 


!l 
1 


600 
600 

I2W 


500 


1 
1 
1 
2 


400 
1000  I 
llOOO 

550  ! 


2950 


2150 


1 
1 


600 
12000 


1 

1                    ' 

700 

1 

450 

2 

470 

4580 


6200 


1 

2 
2 
2 

1 

'  240 
560 
100 

4800 

5700 

500 

S     Dr. 


JAMES 


PILLOW. 


Cr. 


1867. 

Nov. 
Dec. 


9 
31 


Cash 
Balance 


1 

600 

8900 

— 

1867. 

Nov. 
Dec. 

Dec. 

9 

7 

31 

9500 

Cash 
Note  12 


Balance 


ROBT. 


KNOX. 


1867. 

Nov. 
Dec. 


10 
21 

28 
31 


Cash 


n 


Balance 


1867. 

1 

200 

Nov. 

10 

2 

150 

Dec. 

14 

2 

400 

3959 

Dec. 

31 

4709 

Cash 
Note  14 


Balance 


JAMES 


WATT. 


1867. 

Nov. 
Dec. 


16 

31 


Cash 
Balance 


1 

400 
3050 

— 

18«7. 

Nov. 
Dec. 

Dec. 

10 
14 

31 

♦ 

3450 

Cash 
Note  15 


Balance 


GEORGE 


DRAPER. 


WILT.TAM 


HAY. 


16 


1867. 

Nov 

Dec.  21 

31 


Cash 

n 
Balance 


1867. 

1 

200 

Nov. 

16 

2 

500 

1 

1 

30 

2735 

-— 

Dec. 

31 

3435 

Dec. 

1 

31 

Cash 

// 
Note  10 


Balance 


372 


1 

1700 

2 

7800 

9500 

8900 

1 
2 

749 
3960 

4709 

3959 

1 
2 

450 
3000 

3450 
3050 

1867. 

1867. 

__^ 

Nov. 

16 

Cash 

1 

200 

Nov. 
Dec. 

10 
21 

Cash 
Note  11 

1 
2 

750 
2600 

1 
2 
2 

1475 

1000 

960 

3435 

2735 

Dr. 


JOHN 


1867. 

Nov. 


23 
30 


Certif.  of  Dep.  No.  1 
Cash 


HATCH. 


700 
840 


1867. 

Nov.  Il6 


Dec. 


28 


Cash 
Note  16 


Or.     4 


760 
200 


WHITE 


1867. 

Nov. 
Dec. 


23 

30 

28 


Dec. 


Cash 

Certif.  of  Dep.  No.  2 

Cash 


31 


Balance 


%t 


EDWARDS. 


1867. 

1 

800 

Nov. 

16 

1 

1000 

Dec. 

28 

2 

2400 

31 

4200 

2300 

Cash 
Note  17 
Balance 


1867. 

Nov. 
Dec. 


23 

7 

28 
31 


Cash 


II 


JONES 


Balance 


400 

200 

240 

1040 


1880 


& 


HATCH. 


1867. 

Nov. 
Dec. 


Dec. 


23 
14 
30 


Cash 
Note  19 


31 


Balance 


1 
2 

2 


750 

1000 

130 


1880 


1040 


RICH 


& 


GRAY. 


1867. 

1 

20 

Nov. 

23 

2 

130 

> 

Dec. 

28 

810 

— 

Dec. 

31 

960 

Balance 


373 


460 
500 


960 


810 


H     Dr. 


HAY 


& 


WOOD. 


Or. 


1867. 

Nov. :  23  Cash 
Dec.     4     u 


400 
400 


1867. 

I  Nov.  23  Cash 
30     // 
Dec.     7!     // 

28  \,te  20 


1 
2 
2 
2 


500 
700 
615 
560 


HOBERT 

MARTIN. 

i8«r. 
Dec. 

14 

Cash 

2 

300 

t 

1M7. 

Dec. 

1 

30 

Cash 

m 

2 

400 

H.  P. 


FORD  &  CO. 


1887. 

Dec.   31;  Cash 


600 


CERTIFICATES 


1867. 

Dec.  1 31  Cash, 


Dec. 
Dec. 


2^ 

I 

21 


No.  1    2 


If    3 
<r     5 


2 
2 


700 

600| 

2000 


OF  DEPOSIT. 


1887 

Nov.  23  Cash, 
30;     If 


Dec. 


14 


374 


If 
If 

If 


No.  1 


//     3    2 
w     4    2 


700 


//    2    2  '  1000 


600 

900 

2000 


GENERAL    LEDGER, 


ERIVATE  BANKER'S  ACCOUNTS. 


1.  When  there  is  no  Journal  kept,,  this  book  is  posted  exclusively  from  the  Cash  Book 

Jt  has  no  other  auxiliary.  >*, 

2.  It  is  closed  whenever  the  partners  desire  to  divide  the  profits  or  see  the  results  of 

their  business 


375 


I     Dr. 

P. 

DUFF. 

Cr. 

Dec. 

31 

Balance             f 

4 

22482  87 

1 

18C7. 

Nov. 
Dec. 

Dec. 

2 
31 

31 

Cash 

Profit  &  Loss     f 

1 
4 

20000 

2482 

87 

22482 

87 

22482 

87 

• 

Balance 

22482 

87 

WM. 


1867. 

Dec. 

31 

Balance              f 

4 

11241 

1 
43 

1867. 

Nov. 
Dec. 

Dec. 

2 
31 

31 

Cash 

Profit  &  Loss    f 

1 
4 

• 

10000 
1241 

43 

11241 

43 

11241 

43 

« 

• 

Balance 

11241 

43 

Dr. 

DEPOSITORS' 

ACCOUNT. 

Cr. 

^ 

1887. 

Nov. 

2 

7 
8 

Cash 

11 

1000 

675 

1600 

1867. 

Nov. 

2 

7 
8 

Cash 
It 
II 

2200 

1900 
2200 

9 

If 

2400 

9 

It 

3260  1 

10^ 

II 

1100 

10 

It 

3049 

XV 

16 

If 

1300 

16 

II 

5985  1 

23 

It 

7920 

23 

II 

2900 

3(1 

II 

4920 

30 

i| 

6630 

Dec. 

4 

II 

560 

Dec. 

7 

// 

8815  , 

7 

14 
21 
28 
31 

It 
1 

It 
If 
II 

360 
430 

2850 
3640 
6700 

14 
21 
28 
30 
31 

It 
II 
It 
It 
It 

9960  1 
2700- 
1410* 

800! 
13910 

Balance            f 

4 

30354 

Dec. 

31 

! 
I 

65809 

65809 

t 

Balance 

30354 

1 

I 

I 


w. 


WOOD. 


1867. 

Dec. 

31 

Balance              f 

4 

11241 

44 
44 

1867. 

Nov. 
Dec. 

Dec. 

2 
31 

31 

Cash 

Profit  &  Loss    f 

Balance 

1 
4 

10000 
1241 

44 

11241 

11241 

44 

11241 

44 

CASH 


ACCOUNT. 


1867. 

Nov. 
Dec. 


Dec. 


3C 
31 


Sundries 


31  Balance 


78343  66 

68883  08 


147226  74 


Sundries 

// 
Balance 


1 
1 

4 


376 


51810 

88679 

0737 


147226 


74 
74 


BILLS 


1867. 

Nov. 


Dec. 


Dec. 


2 
9 
11 
23 
7 
14 
21 
2g 

f 
311 


Cash 


31  Balance 


'^ 


17400 

4200 

1600 

7400 

3800 

4500 

5600 

12600 

24000 

15000 

1254 


97354 


68354 


RECEIVABLR 


1867. 

Nov. 
Dec. 


23 
30 
14 

28 
31 


Cash 

// 
It 
It 
It 
It 
It 
Balance 


377 


I 


5600 
4000 
2800 
4200 
3600 
3800 
5000 
CS354 


97354 


3     Br. 


DISCOUNT 


ACCOUNT. 


Ce. 


Dr. 


R.  P. 


(Cincinnati,  0.) 


DUFF. 


Cr-     4 


18C7. 

Nov. 


Dec. 


Cash 


K 

2i 

30 

4 

7 
21 

281 
31 


ofit  &  Loss    f 


20 
37 
12 
15 
75 
105 
31 
15 
24 
56 
12 
50 
4965 


5417 


74 


1807. 

Nov. 


Dec. 


i 


Cash 

7!     // 


1 

2^ 

30 

4 
7 

14 
21 
28 
^ 
30 
31 


// 
It 
It 
n 
n 
II 
II 
.11 
II 
II 
n 
II 
It 


158 

69 

25 

39 

62 

154 

110 

1260 

75 

2618 

80 

143 

306 

200 

113 


5417 


92 


70 
47 
57 


50 
60 

80 

84 


34 

"74 


1867. 


Dec.  !30 


Dec. 


31 


Cash 


Balance 


THOMAS  P. 


1867. 

Dec. 


Dec. 


31 


31 


Cash 


Balance 


130 


130 


1807. 

Dec. 


81 


Balance 


(New  Orleans.) 


SHEPHERD 


960  i 


960 


1867. 

Dec. 


31 


Balance 


130 


960 


\ 


I 


DUFF 


(New  York.) 


BROTHERS  &  CO. 


1867. 


Dec.  28  Cash 


Dec.   31   Balance 


1188 


1188 


188 


1807. 

Dec. 


3l|  Cash 

Balance 


1 

4 


1000 

188 


1188 


THOMAS 


(Chicago.) 


THOMPSON  &  CO. 


1887. 

Dec. 

31 

Cash 

Balance              f 

1 
4 

4950 
1050 

1887. 

Dec. 
Deo. 

31 
31 

Cash 

I 

1 

6000 

6000 

6000 

tt 
• 

Balance 

10.50 

378 


PROFIT 


BALANCE 


1867. 

Dec.   31 


Cash  f  1 

Bills  Receivable  2 

Duff  Bros.  &  Co.  3 

R.  P.  Duff  4 

T.  F.  Shepherd  4 


& 


LOSS. 


2482 !  87 
1241  ;  43 
1241  :  44 


4965  ;  74 


18C7.   '       ! 

Dec.  31  Discount 


4965  1  74 


4965    74 


ACCOUNT. 


6737 

68354 

188 

130 

960 

76369 

74 

74j 

1867. 

Dec. 

• 

31 

Depositors         f 
Thompson  &  Co. 
P.  Duff 
Wm.  Hay 
W.  Wood 


379 


30354  I 
1050' 
22482  87 
11241  43 
11241  44 


76369  I  74 


;ii 


SELECTED   PROBLEMS   IN   ACCOUNTS. 


1. 

2. 
3. 
4. 

O. 

6. 


8. 

9. 
10. 
11. 
12. 
13. 
14. 
15. 
16. 
17. 
18. 

19. 
20. 
21. 
22. 
23. 
24. 
25. 
26. 
27. 
28. 
29. 
30. 


QUESTIONS  FOR  EXAMINATION  ON  PRIVATE  BANKER'S  ACCOUNTS. 

What  office  does  the  Cash  Book  perform?  (N.  1,  p.  351.) 

Into  what  book  are  its  contents  posted?  (N.  1,  p.  351.) 

Where  are  the  aggregate  monthly  receipts  and  payments  posted  from?  (N.  2,  p.  351.) 

What  is  entered  in  the  Deposit  Register?  (N.  1,  p.  355.) 

Where  are  the  daily  amounts  carried  to?  (N.  1,  p.  355.) 

Into  what  book  do  we  post  the  particulars?  (N.  1,  p.  355.) 

What  does  the'Check  Register  record?  (N.  1,  p.  356.) 

Where  are  the  amounts  transferred  ?  (N.  1,  p.  356.) 

How  often  ?   (N.  1,  p.  356.) 

Where  do  we  post  the  particulars?  (N.  1,  p.  356.) 

What  is  entered  on  the  Bill  Book  ?  (N.  1,  p.  358.) 

Where  are  the  discounts  entered?  (N.  1,  p.  358.) 

Where  do  we  enter  the  payments?  (N.  1,  p.  358.) 

Where  dd  we  record  the  maturity  of  discounted  paper?  (N.  1,  p.  358.) 

What  does  the  Collection  Register  record  ?  (N.  1,  p.  360.) 

What  is  done  with  the  net  proceeds  of  collections?  (N.  1.  p.  360.) 

When  are  Foreign  Notes  or  Bills  remitted  for  collection?  (N.  2,  p.  360.) 

When  you  are  notified  by  your  agent  of  the  payment  of  a  collection,  how  is  it  entered  ; 

(N.  2,  p.  360.) 
What  is  recorded  in  the  Discount  Book?  (N.  1,  p.  362.) 
When  and  where  are  the  amounts  carried  to?  (N.  1 .  p.  362.) 
How  many  Ticklers  are  kept  by  some  Bankers  ?  Q\.  1,  p.  365.) 
How  do  we  enter  the  notes  as  they  are  paid?  (N.  2,  p.  365.) 
What  is  done  with  protested  paper  ?  (N.  2,  p.  365.) 
Who  pays  the  expenses  of  a  Protest  ?  (N.  2,  p.  365.) 
What  accounts  are  kept  in  the  Depositor's  Ledger  ?  (N.  2,  p.  369.) 
What  books  is  it  comjlbsed  from  ?  (N.  2,  p.  369..) 
When  are  the  accounts  in  it  balanced  ?  (N.  2,  p.  369.) 
What  must  the  aggregate  balances  agree  with  ?  (N.  3,  p.  369.) 
Where  are  the  contents  of  the  General  Ledger  posted  from?  (N.  1,  p.  375.) 
When  is  it  closed  ?  (N.  2,  p.  375.) 


380 


PROBLEM  I. 

W-  X.,  Y.,  and  Z.  bought  of  A.  on  joint  account,  each  },  $20000  worth  of  sugars,  for 
which  W.  as  manager  of  the  sales  gave  his  note  to  A.  at  four  months,  indorsed  by  the  other 
partners;  and  each  partner  made  conforming  entries  in  his  books.  Afterward,  A.  offers 
W.  5  per  cent,  discount  off  the  face  of  his  notes,  to  cash  them,  which  W.  on  conferring 
with  X.  and  Y.  agrees  to,  Z.  being  a  resident  of  Philadelphia,  to  which  place  he  had  re- 
turned after  entering  into  the  above  transaction.  W.  pays  his  own  share  and  half  of  Z.'s 
in  cash,  less  the  5  per  cent,  discount.  X.  pays  his  own  share  and  one-fourth  of  Z.'s,  less 
the  5  per  cent,  discount,  in  a  draft  at  sight  on  C,  of  New  York,  which  A.  accepts  in  pay- 
ment at  f  per  cent,  premium;  X.  allowing  him  1  per  cent,  brokerage  on  the  face  of  the  draft 
for  negotiating  it.  Y.  pays  his  own  share  and  \  of  Z.'s,  less  5  per  cent,  discount,  in  a  draft 
at  60  days'  sight  upon  Z.,  which  A.  accepts  in  payment  at  2  J  per  cent,  discount,  drawn  for 
such  sum  as  will  cover  the  transaction,  and  1  per  cent,  brokerage  on  the  face  of  the  draft, 
which  A.  charges  for  negotiating  it.  On  advice  of  this  second  arrangement,  Z.  makes  con- 
forming entries  in  his  books.  Afterward  W.  orders  him  to  invest  the  amount  which  he  had 
advanced  for  him  in  the  above  transaction  in  bills  on  New  Orleans,  and  remit,  on  W.'s 
account,  to  B.,  of  that  place.  This  was  done  in  bills  at  2*  per  cent,  discount,  which  closed 
the  account,  and  covered  \  per  cent,  brokerage  on  the  face  of  the  bills,  which  Z.  charged 
for  investing. 

Required  the  correct  amounts  and  the  correct  Journal  entries  of  W.,  X.,  Y.,  and  Z.,  in 
each  of  the  above  transactions. 

PROBLEM  11. 

A.,  B.,  and  C.  purchased  the  machinery  and  hull  of  an  old  steamer  called  the  "Vixen," 
for  $10000,  of  which  A.  paid  $4000,  B.  $3400,  and  C.  $2600.  They  afterward  sold  \  of 
the  purchase  to  D.  for  $2000  cash,  which  they  divided  and  drew  out  of  the  concern  in  such 
proportions  as  left  them  all  \  ovrners.  In  these  proportions  as  owners,  and  with  this 
machinery,  they  built  the  steamer  "  Yolante.''  In  addition  to  their  shares  in  the  machinery, 
A.  paid  in  cash  $l'261,  B.  $1320,  C.  $1410,  and  D.  $1430.  After  running  fifteen  months, 
the  boat  was  sunk  and  lost.     The  accounts  on  her  books  then  stood  as  follows : 


Steamer  "Volante" 
Steamer  "Vixen" 
Freight  account 
Passage      ii 
Wages         II 
Fuel  w 

Expense      ii 
Bills  Payable 
Bar  account    . 


DcbiU. 

$14894.83 

«4.35 
0.67 

21923.88 
11843.02 
24134.27 

130.30 


Credits. 

$265.39 
35803.04 
28375.17 


104.01 
8450. 
363.71 


Effects  saved  from  the  wreck  realized  $2860.  C.  and  D.'s  shares  were  uninsured.  A 
had  $4000  and  B.  $3000  insured  on  their  shares,  valued  at  $5000  each.  The  amounts  in- 
sured when  recovered,  and  the  amount  realized  by  the  owners  from  the  wreck,  were  applied 
in  discharging  the  above  claims  against  the  vessel.  Each  owner  was  \  gain  or  loss.  Re- 
quired the  settlement  of  the  transaction  between  them.  Also,  the  division  of  D.'s  purchase- 
money  between  A.,  B.,  and  C. 

PROBLEM  III. 

A.,  B.,  and  C.  agree  to  do  business  in  partnership,  on  the  following  terms:  C.  is  to 
manage  the  business,  and  to  have  a  commission  equal  to  half  the  net  gain  on  the  business 
for  the  management  of  it.  A.  pays  in  $2600  capital,  B.  $1400,  C.  $1200.  C.  draws  out 
$2400.  At  the  end  of  the  year  they  have  cash  on  hand,  $3000 ;  merchandise,  $2400. 
They  owe  $500.  Their  expense  account  is  Dr.  for  $600.  The  gain  or  loss  to  be  divided 
equally. 

Required  the  balance  due  each;  also,  the  amount  of  C's  commission. 

381 


il 


^  ^1 


*'• 


SELECTED   PKOBLEMS. 


PROBLEM    IV. 

C.  is  manager  of  a  joint  speculation  in  flour  with  D.  and  E.,  of  which  C    and  T)   ,r. 
each  i  and  E  i  proprietors.     C.  takes  $12,000  worth  of  the  joint  property  to  his  private 

He  pays  U  $1500  m  merchnndise,  and  gave  his  (C.'s)  note  for  $1000,  and  save  ud  his 
(D^s)  own  note  which  he  held  against  him  for  $500.     He  paid  E  his  *  ( Seoom     mnan 
in  flour  belonging  to  the  Company,  and  $3000  in  his  (C.-sfdrafron  F    of  NewVork  at 
hrotZ:'^\"'^^  ^l  cent,  discount  for  such  sum  as  Will  Ler  the  $3000  and*  per  cen' 
brokerage  on  the  face  of  the  draft,  which  E.  charges  for  negotiating  it.  ^ 

Required  C.'s  Journal  entry,  with  the  correct  amounts  composing  it. 

PROBLEM    V. 

T  fc^!nTl!  "^^°"''  T^  "y'"'^  ""  "^"'"S  business  on  joint  account.     As  manager  of  the  sales 
Sor  losr  On"thr  ""^  ^'"Z:"  ^""K''  '"'^'^  *«  *'"«  of  1^'  «<>•  sales  eahpartae; 

insut::  p^!r^:'^:^:l,l't'^^^^  '-  «».  s^es.     I^ave  paid 

rectr  my  i7v  JcToflhTrmf  '"^  ^""'  '''''^''"'  ^''°'  ^°""^'  ^^"^  -"7>  -"en  he 

PKOBLEM    VI. 
J  ^^^'.^'  ^7®'  and  J.  KiDg,  owners  of  steamer  "Albatross." 
Jt^r%i;\rrn^L^it^a7p:ar°^t"^^^^^  ^^  -^^S  ^He 

J.  Bay  paid  in  S2400,  drew  out  81158 
■  Howe      //       2690,  /a        1212 

J.  King       //      4950,  //        2750 

the  bo'at  $157"  *''*''  "'  '•"'  ""''  "'""'''  *'''  '*-""  -^-k.  $820,  and  debts  due 
Required  the  settlement  between  the  owners  of  the  boat. 


PROBLEM    Vn. 

^ 81440 

p 1465 

i; 1485 

^ 1610 

$6000 
which  sums  were  placed  to  the  credit  of  their  respective  accounts  on  the  vessel's  books 

382 


SELECTED  PKOBLEMS. 

For  the  balance  of  $2000  they  gave  their  joint  note,  which  was  afterwards  taken  up  with 
,  funds  earned  by  the  boat. 

At  the  end  of  six  months,  D.  sells  out  his  interest,  as  it  then  stood  upon  the  books,  to 
C,  who  paid  him  for  the  same  out  of  his  own  private  funds.  The  remaining  owners  some 
time  afterwards  sold  the  vessel  for  $6500 ;  and,  after  discharging  all  claims  against  them, 
they  have  cash  and  other  effects  left  amounting  to  $6450.  The  books  were  kept  by  Single 
Entry,  and  no  settlement  took  place  since  the  commencement  of  their  connection.  Their 
accounts  now  stand  upon  their  Ledger  as  follows : — 

A/s  account  debited  for  sums  withdrawn,  $2050,  and  credited  for  sums  paid  in,  $2255 
B/s  »  ff  1  1640,  nun  2060 

C.'s  nun  1750,  n  w  a  2110 

D.'s  n  M  It  1965,  «  *  »  2090 

No  interest  to  be  computed  in  the  settlement.  Required  the  division  of  the  above  $6450 
between  A.,  B.,  and  C. 


PROBLEM   VIIL 

On  January  1,  1867,  Brewer,  Malt  &  Co.,  of  Pittsburgh,  sent  their  clerk,  W.  Porter, 
to  Louisville,  to  establish  an  agency  for  selling  their  ales.  On  30th  June  following,  the 
agency  was  discontinued,  and  they  rendered  the  following  account  to  Porter,  the  items  of 
which  both  parties  agree  are  correct,  but  Porter  thinks  the  balance  is  not  correct.  Is  it 
80  ?  or,  what  is  the  correct  balance  ? 

> 

MB.  WALTEE  PORTER 


Dr. 


In  Account  with  BREWER,  MALT  &  CO.,  Cr. 


1867. 

Jan. 


June 


1 
30 
30 


To  Cash  advanced. 
Invoice  of  Ales , 

Cash 

Invoice  of  Ale. , 
Cash  for  sales.. 
Ale  returned... 


1/ 


II 


To  Bal.  due  B.,  M.  &  Co. 


1867. 

191 

Feb. 

297 

Mar. 

389 

; 

May 

298 

June 

2938  50 

810 

50 

4923 

608 

1 
1 
1 

30 


By  Cash  paid  for  Barley 
II  Casl^aid  for  Hops... 

II  Paid  Kent 

II  Paid  Expenses 

//  Salary 

Ale  returned 


I! 


! 


// 


1508 

1007 

260 

40 

690 

810 

Balance  due 608 


50 


4923  50 


PROBLEM    IX. 

Lea  &  Preston  purchase  of  J.  Stanley  \  of  the  steamer  "  Herald,"  which  is  h  his  paid- 
up  capital  (at  his  credit  on  the  books)  of  $6500,  for  which  they  pay  him  $4000.  They 
have  an  account  against  the  boat  for  repairing  machinery  of  $1250,  which  it  is  agreed  is 
to  stand  as  part  payment ;  the  balance  they  pay  Stanley  in  cash.  Required  the  Journal 
entry  to  introduce  the  new  owners  into  the  books. 

383 


INDEX. 


ii 


Abbreviations 

•  •  •  • 

Acceptance,  form  of,  Form  XI 

Accepting  a  correspondent's  draft,  Jan.  3,  p.  70*;  Feb.  20  * 

Accepting  supra  protest  for  honor  of  drawer,  Apr  10 

Account  Books,  directions  for  ruling      .... 

Accounts  current  with  interest  . 

forms  of 

of  sales,  form  of         ,        ,    '  ' 

,  on  jomt  account 

personal.  Rules  III.  &  IV.,  p.  38:  note  3  .    '     .    ' 
Profit  &  Loss,  how  kept,  Rule  VIII.,  p.  40;  Note  1 
property,  how  kept,  notes  1  &  2,  p.  35 :  Note  7 
property,  Rules  VI.  &  VII 

Addition,  method  of  proving 

Advance  and  discount  compounded,  Ex.  10,  11,  12  13 

Average  gain  or  loss  on  Mdse.  account,  Rule 

Exercises 
Average,  General,  computations  in     . 


Balance  account.  Double  Entry 

Single  Entry   .         .         .   '     .   * 

Balance  Sheet,  form  of 

Bank  Stock  received  in  legacv,  Anr  10* 

Bill  Books,  forms  of       ^    -f '     ^  '  ^"     *        •        • 

Bill  of  Exchange  (foreign),  accepting,  * 

collection  of, 

payment  of, 

payment  of  acceptance, 

purchase  of, 

purchase  of,  on  commission, 
„.,  sales  of,  ... 

Bill  of  Parcels,  form  of 

Bills  and  notes  paid  in  instalments.  Notes  3  *&  4 

Bills  of  Exchange,  &c.,  Rule  IX 

Bills  Payable  account,  directiDns  for 

Receivable  account,  directions  for 
Boards,  computing  the  price  of  . 
Bottomry  Bond,  cash  lent  on,     Feb.  25 

collected,  Apr.  25      .*.*.* 

Cash  account,  directions  for 

why  balance  monthly    . 
Cash  Book  defined         .        .        .        .        .     '   .     *  . 

directions  for  ruling 
Cash  entry  for  lost  money  when  found,  .     Feb  25 

received  for  investment  on  joint  account.  Mar.  1 

Cash  Sales  Book 

Check  Book  balanced,  with  part  of  the  checks  unpaid  * 

defined       

form  of 

Ciphers,  why  not  used  in  cent  columns.  Note  8      .     ' 
Closing  the  Ledger,  specifications  for  exercises 
Commission  &  Brokerage  computation 

adjusted  with  a  retiring  partner,  Ex.  10 

Rates  by  New  York  Chamber  of  Commerce 

n         •    .      o  1     X,    P^^i^adelphia  Chamber  of  Commerce 
Commission  Sales  Book  defined 

Consignment,  amount  unsold  taken  to  account,      *  Mar*.  12 
(foreign),  received  on  joint  account,  Apr.  20 
Consignments,  average  time  upon,  how  found,   . 

384 


Feb.  20 
Feb.  25 
Feb.  18 
Mar.  5 
Feb.  25 
June  12 
Feb.  28 


PAGE 

.      21 

119 

.      76 

86 

.    163 

114 

20,  116 

117 


118 

23 

24 

23 

39 

197 

198 

36 

198 

211 


35,  113,  134,  174 

17 
.    175 

84 
.       48,  148 

76 
.      76 

76 
.      80 

76 
.      94 

78 
.      20 

52 
.       40,  118 

34 

.      33 

210 

.      76 

88 

.      34 

112 

.  9,  53, 144 

57 

76 

78 

8 

219 

146 

146 

27 

213 

199 

204 

192 

191 

65,  143 

80 

.      88 

68 


INDEX. 

rA«a 

Consignments  (foreign),  received,  entry  for,  Feb.  1 74 

made  to  others,  Rule  XL '     .   *    .    *    .   *      41 

received  and  reconsigned  to  others,  Feb.  12 74 

received,  Rule  for  conducting.  Rule  X *     .    *     .   *      41 

for  finding  the  net  proceeds,  Note  25 41 

Day  Book,  Double  Entry,  definition  of 24 

opened  in  individual  business       .        .        .        .        .     *  .     '    28,  70 

Single  Entry,  definition  of 14 

opened  in  partnership XO 

Six-Column '    .    "    .   *  125 

the  book  of  original  entry.  Note  1 25 

Deranged  Double  Entry  books,  to  rectify .*.'.'.*        *  215 

Discount,  by  bank,  entry  for,    Feb.  6     . '.*.*.*.  74 

by  myself,  of  notes,  Dec.  21 *.*.*.'        *  30 

Drafts  received  for  collection,   Feb.  25 '.'.*.'.  76 

Endorsed  Note,  form  of,  Form  XVII ng 

Equations,  compound *.*.*.*                 *  209 

simple .*.*.'.*.'.'.*.'.*  207 

storage 208 

Errors,  detecting  and  correcting *.*.'.*.*.*       98  163 

Estate,  bankrupt,  division  of  assets,  Ex.  14  .        .        .        .'.*.*,*.'.        .217 

Exchange,  indirect *.*.*.'.*        *        *  206 

Exchanges,  domestic  and  foreign *.'.'.*.*         *  205 

Executor  of  an  estate,  payments  as,          .     Mar.  16,  17     .  *     .  *     ,  *     .  *     .   *     .  *     .    *  g2 

.                           property  received  as,  Mar.  12 *  ...  82 

Exercises  for  the  final  examination  of  the  student ^^ 

in  closing  the  Ledger '.'.*.*.*.  213 

in  discounting  business  paper 221 

in  making  out  invoices           . ^        .    *    .     *  219 

in  opening  books *.'.".'.*.*  212 

in  stating  accountsf  of  sale *.*.*.*.*  207 

in  the  settlement  of  consignments '     ,    '        *  220 

in  the  settlement  of  joint  accounts          .         .        .        .*.*.*,*.  220 

Expense  Book,  directions  for  keeping         ,        ,        .        ,        ,',*,*,*        *        *  147 

Foreign  importation,  on  my  own  account,  Dec.  1,  p.  30:  Feb.  1     .        .  74 

Freight,  computing '.'.*.*    210 

Freight  of  vessels tjo 

Gain  &  Loss,  adjustment  between  partners         ....*..,         203  204 
House,  Insurance  of,  Feb.  18         .        .        .  ^n 

Insolvent  debtors,  compounding  with,  Jan.  20 72 

note  compounding  for,      Feb.  12  *.'.'.*.*.*.*.     *  74 

Insurance,  effected  on  a  ship  as  agent.  Mar.  4 *      78 

on  a  shipment  as  agent,  May  31       .        ,    '   ,        \    '        *        '        *  99 

on  my  house,    .        .       Feb.  18 '.*.'.*      76 

*    on  my  store,  .  Feb.  18 75 

covering  the  premium  and  policy,  Ex.  5 

settlement  with  the  insurers  for  loss  by  fire,  Feb.  28   .     *   .    *   .     *   .     *   .     '  73 

with  the  underwriters,     .         .     June  18  * 94 

Interest,  abbreviated  rule  for  computing        ....  ...        ^ 

adjustment  of *        ' iqa  oaq 

legal  rates  in  different  States  .        .        .       ,.*.*.*.'        *        *  foo 

mercantile  and  legal,  rule  for  computine oni 

Inventory,  forms  of        .        .        .        .      ^      °         .     *    .     *        *        *        "        '     .g  61   m 

Invoice  Book,  defined         ....  '  tlill 

form  of    .         . tq'lf? 

formsof         .        .        .        .        .        .    * ^?^^ll 

Invoices,  exercises  in  making 219 

Joint  accounts,  closing  with  a  loss,  June  1 94 

with  gain.    Mar.  5     .        .        .'.'.*.'        '        *        *  80 

with  part  sold,  Note  4,  1st  Co.  Sales      .        .'.*.'.*.'  109 
z                                                    385 


i! 


•  r 


Mar 
Mar 


INDEX. 

Joint  accounts,  closing  with  property  returned  unsold,  June  25 

with  sales  complete,  Note  13 
defined  ........ 

Rule  for  conducting  as  manager,  XII. 

as  silent  partner.  Note  9 
for  finding  net  proceeds,  Note  1 
when  our  share  is  paid  in  by  a  partner,   Mar.  1 
when  we  find  our  partner's  stock, 
when  we  find  a  part  of  partner's  stock 
Joint  Promissory  Note,  form  of,  XII. 
Journal,  checking  of,  Note  2 

definition  of  ... 

directions  for  posting 
monthly        .... 

Six-Column 

use  of,  Note  6       .        .        . 
Journalizing,  from  the  auxiliaries 
monthly 
Rules  for 
Journeymen's  wages,  entry  for,  Feb.  1 
Judgment  Note,  form  of,  Example  9 

Key  to  principal  articles    .        .        • 

ledger,  closing  in  partnership 

Double  Entry,  definition  of    . 
on  opening  and  closing 
opening  in  partnership 
private,  form  and  definition 
rules  for  closing    . 
Single  Entry,  definition  of 
on  closing 

re-opening  by  Double  Entry 
Letter  of  Advice,  form  of,  Form  XXI. 
of  Credit,  form  of.  Form  XIX.    . 
of  Introduction,  form  of,  Form  XVIII 
Loan  upon  an  endorsed  note,  Apr.  1 


Manufacturers'  Time  Registers,  form  of     . 

Merchandise  account,  directions  for 

daily  sales  of,  how  found  by  average 
gain  per  cent,  on  sales,  how  found 
imported  on  private  account,  Feb 


Note  14; 


insurance  of,     .        .        .        .     Feb.  18 
received  for  sale  on  joint  account.  Mar.  1 


2 

28 


Notes,  accepting  supra  protest,  for  honor  of  a  correspondent,  Apr 

collection  of,  when  past  due, Apr 

promissory,  accommodation,  entry  for,         .         .  Jan 

forms  of         ......        . 

when  endorsed,  due  and  unpaid,  entry  for.  Mar.  16 

Opening  Books,  specifications  and  exercises  in 
Orders,  forms  of 


Partnership  Books  closed  with  profits  equal  . 

with  profits  unequal  . 
introducing  a  new  partner 

opened  

settlements 

settlements  by  single  entry 

settling  after  dissolution 

Payment  of  draft  for  honor  of  a  correspondent,  Apr.  10 

of  our  note  under  protest,       .        .      Apr.  29 

Posting  defined,  Note  7 

from  the  primary  books  to  the  Ledger 

how  marked,  Note  8 

386 


10 
20 
31 


PAOB 

96 

43 

42 

43 

42 

43 

78 

78 

84 

119 

32 

25 

32 

163 

157 

25 

162 

163 

26 

126 

222 

183 

130 

23 

32 

129 

173 

99 

14 

18 

19 

120 

120 

120 

84 

186 
33 
36 
36 
74 
76 
78 

86 
86 

72 

119 

82 

212 
118 


174 

134 

136 

124 

177,  215 

13,  214 

176 

84 

88 

24 

162 

24 


INDEX. 

PA6B 

Private  Ledger,  how  opened  and  closed 173 

Profits  divided  equally '.*'.'.'     174 

divided  in  proportion  to  capital 134 

to  time  and  capital .        216 

Promissory  Note,  form  of,  X '   .        .119 

Proof  Sheet,  an  improved  form  for  monthly  trial *     .        .        172 

forms  of *   36,'l35,'l71,  183 

Property,  entry  for  rent,  Jan.  18 72 

repairs,         Jan.  18 72 

received  as  executor,  Mar.  12 g2 

received  from  legacy,  Dec.  14 .30 

Quantity  of  goods  for  a  ton,  in  freighting  .        . 194 

Receipts,  forms  of j^g 

how  taken  upon  a  Day  Book  or  Cash  Book,  Feb.  20  .        .*.*.'.*.   7*6  145 

Receiving  and  Forwarding  Register,  form  of *     .  '  igg 

Rents,  collecting *.'.'.'        *      88 

Rules  for  closing  the  Ledger *.*.'.'.*.*  99 

computing  time  when  bills  and  notes  fall  due     .        .*.*.*.*.*.'      45 

debiting  and  crediting.  Single  Entry *        *  7 

Journalizing "'.*.'.*      26 

with  illustrations 38  39  40  41 

Ruling  books  of  account *         '      '      'igo 

directions  for *    .    *   .    "        *  5ft 

Running  time  on  business  paper,  in  days '.'.*.'        *      45 

in  months *   .     *    .      45 

Sales  Book  defined go  iQg 

form  of ....'.       63   138 

Scantling,  computing  the  price  of *.*.".*.'  210 

Settlement  of  accounts  by  "starring  out  balances    .        .        .        .'.'..,',*        218 

Ship,  purchase  of,  Jan.  20 *    .   '  *  22 

sale  of,  June  30 *  .        ..*.'.'.'         95 

Shipment,  closing  with  a  gain,  .        .       Mar.  12 '     .   *        '      80 

entry  for  returns,  .        .   Mar.  12         .        .        .        .*.*.'.*.      80 

(foreign),  loss  of,  at  sea,    .       June  18      .        .     '  .        .        .*.'.*        *      94 
(foreign),  on  joint  account    .    Apr.  10,  15    .        .    '    .        .'.*.*.'.      85 

(foreign),  our  own  account,       Apr.  5 .84 

on  account  of  another  person,  Feb.  12 *.*.*.*.      74 

on  our  own  account,  entry  for,  Feb.  12      .        .        .        .*.'.*.'.*      74 

Rule  for.  Rule  XI *.*.*..      41 

Specifications  and  exercises  in  stating  invoices *        *    219 

Stock  Account,  directions  for '.'.*,'        *        *    33  38 

Stocks,  buying  and  selling.  May  4,    .        .        .        .        .        .*..'.*.*.  90  205 

Storage  Equations *   .    *   .    '        *        *      *  208 

rate  for,  by  Chamber  of  Commerce,  New  York     .        .        .'.'.*.*.        193 
by  Chamber  of  Commerce,  Philadelphia     .        .        .'..'.'.     190 

Sundry  Crs.  account '        "        *     yr^ 

Drs.  account *   .     '   .     *        *        *        170 

Suspended  List *.'.*.'.".*        *     134  174 

Time  Registers,  forms  of i  og 

Trial  Balance  (proof  sheet),  forms  of *.'.'.*.  36  13*5   171 

Sheet,  new  form  for  monthly         .        .        .  >     .        .        .        .*.*.*.'        '  172 

Unexpired  time  on  business  paper,  how  found,  Ex.  51  to  55 201  221 

Vessel,  disbursements  as  agent,        Mar.  4 ^        ^  70 

loan  on  bottomry  bond  of,    Feb.  25        .        .        .        .*.*.*.'.*.*  76 

purchase  of,  as  part  owner.  Mar.  2 *','.*.*.  78 

as  sole  owner,  Jan.  20 "    .   *    .   *  72 

receipts  as  agent,    .        ,     Mar.  5 '.'.*.'  80 

Winding  up  partnership  accounts yj^ 

387 


^ 


i 


\ 


INpEX. 


INDEX  TO  NATIONAL  BANK  BOOKS. 


PAOS 

Articles  of  Association ^ 

By-Laws ^^ 

Bank  Note  Register ^°^ 

Cash  Book,  General,  defined ^' 

Paying  Teller^s 269 

Recei^ng  Teller's 261 

Collection  Register,  City 287 

Foreign ^* 

Passed  City  and  Foreign 291 

Remitted  for 290 

Certified  Checks 273 

Certificates  of  Deposit ^^ 

Discount  Book -j^ 

Depositor's  Ledger,  Improved  form  of f^ 

Dividend  Book • J^o 

•              Check,  form  of    .        .        .                 ^^ 

Forms,  Authority  to  sign  business  paper ^^ 

Certificate  of  Deposit ^^ 

Certified  Check {j^ 

Dividend  Check 309 

Power  of  Attorney  to  transfer  stock ^^ 

Protest  for  non-payment 286 

Semi-annual  Statement jjj^^ 

Teller's  daily  Statement 274 

Foreign  Bill  Book 280 

Bills  of  Exchange 280 

Bill  protested '        *        '        *        *  qaq 

General  Ledger ^^^ 

Introductory  Remarks 242  243  244 

Instalment  Lists ^^  ^^^'  ^ 

,       Scrip 245 

Journal j^^ 

Ledger,  Depositor's J^' 

General i^t 

Stock '  '        '  lu 

Standing,  form  oi ^^;!- 

Minute  Book 229 

OfferingBook *  989 

Protest  Book ^°^ 

Protested  paper,  account  of,  how  kept ^o^ 

Protest,  form  of ^ 286 

Passed  City  and  Foreign  Collection  Register 291 

Questions  for  Examination ^12 

Register  of  Signatures 268 

'"^S^^S^of    •    ■.   •    .•.•.•.•.•.•.•.•.•••     2^2.^1 

Ledger 257 

Register ^^' 

388 


Stock,  Subscription  to 241 

Transfer  of 246 

Transfer  of,  by  Power  of  Attorney 252 

Transfer  Book,  form  of 246 

Teller's  Statement,  form  of 274 

Tickler 293 


INDEX  TO  RAIL  ROAD  BOOKS. 


Construction  and  Equipment  Day  Book 
Dividend  Book  .... 
Forms,  Local  Bill  of  Lading . 

Petroleum  Bill  of  Lading 

Through  Bill  of  Lading    , 

Through  Manifest 

Way  Manifest   . 
General  Ledger 
Introductory  Remarks  . 
Journal 
Ledger,  General    . 

Stock    . 
Operating  Expenditures 

Receipts    . 
Questions  for  Examination 
Stock  Ledger    . 


315 

340 
322 
330 
322 
328 
328 
341 
314 
331 
341 
337 
323 
329 
348 
337 


INDEX  TO  PRIVATE  BANKER'S  BOOKS. 

Bill  Book 35g 

Collection  Register     ' 360 

Cash  Book          . 351 

Check  Register .356 

Deposit  Register 354 

Discount  Book 362 

Depositor's  Ledger     . .  369 

Foreign  Collection  Register 360 

"Five-Twenty"  Bonds,  form  of 364 

General  Ledger 375 

Ledger,  Depositor's 369 

General 375 

Preliminary  Remarks 351 

Questions  for  Examination 380 

Tickler 365 


389 


RECOMMENDATIONS. 


"  It  gives  a  clear  insiglit  into  this  science  through  all  its  gradations,  from  the  simple 
style  of  the  retailer  to  that  required  for  the  most  varied  and  complicated  commercial  busi- 


RECOMMENDATIONS. 


THE   FOLLOWING   RECOMMENDATIONS   INDICATE   THE   PUBLIC   SENTIMENT  IN 

REFERENCE   TO   THIS   WORK. 

Extract  from  the  official  report  of  a  Special  Committee  of  Merchants  of  the  Chamber  of 
Commerce  of  the  city  of  New  York  : 

Chamber  or  Commerce,  New  York,  Feb.  6,  1849. 
At  a  regular  meeting  of  the  Chamber,  held  this  day,  the  following  report  was  presented, 
accepted,  and  a  copy  ordered  to  be  transmitted  to  Mr.  Duff.  The  committee  to  whom  was 
referred  the  subject  of  Mr.  Duff's  work  on  Book-keeping,  Rep(yrt^  That  they  have  examined 
the  work  submitted  to  them,  and  deem  the  favorable  opinions  which  have  already  been  ex- 
pressed by  gentlemen  of  competent  authority,  and  prefixed  to  its  pages,  well  deserved,  and 
in  this  case  very  properly  bestowed. 

Respectfully  submitted, 
(Signed)  CHARLES  M.  LEUPP,  Merchant. 

LEOPOLD  BIERWIRTH,   do. 
ROBERT  KELLY, 

President  of  the  Board  of  Education. 
Extract  from  the  Minutes. 
Prosper  M.  Wetmore,  Secretary. 

Extract  from  a  report  of  a  Special  Committee  of  Merchants  and  Accountants,  appointed 
by  the  Board  of  Managers  for  the  American  Institute,  to  examine  this  work : 

"  Your  committee  are  so  favorably  impressed  with  the  proposed  improved  method  of  Mr. 
Duff,  that  they  unanimously  concur  in  the  opinion  of  its  utility,  and  that  the  public  would 
be  benefited  by  adopting  it." 

I  certify  that  the  foregoing  is  a  true  copy  of  a  Report  of  a  Special  Committee,  made  to 
and  adopted  by  the  American  Institute  of  the  city  of  New  York. 

GURDON  J.  LEEDS,  Recording  Secretary. 

"  It  contains  much  matter  that  is  important  and  interesting  to  the  merchant  and  man  of 
business,  to  whom  it  will  be  found  highly  useful."  C  0.  HALSTEAD, 

Late  President  of  Manhattan  Bank,  N.  Y. 

*'  It  is  by  far  the  most  complete  work  of  the  kind  I  have  ever  seen." 

JAMES  B.  MURRAY, 

President  Exchange  National  Bank,  Pittsburgh. 

"  I  differ  entirely  from  those  who  think  the  counting-house  the  best  place  to  learn  Book- 
keeping in.  From  this  work  it  is  learned  in  its  application  to  every  form  of  business,  un- 
trammelled by  the  peculiar  details  of  any  one  kind  of  business." 

THOMPSON  BELL, 
President  Commercial  Bank  of  Pittsburgh. 

"  No  other  work  upon  Book-keeping,  so  far  as  my  knowledge  of  them  extends,  explains 
the  subject  with  so  much  clearness  and  simplicity."  F.  W.  EDMONDS, 

Late  Cashier  Mechanics'  Bank,  Wall  Street,  N.  Y. 
390 


ness 


A.  S.  FRASER, 
Cashier  Seventh  Ward  Bank,  N.  Y. 


"  I  graduated  in  Duff's  College  in  about  half  the  time  that  I  expected.  His  admirable 
system  leaves  out  nothing  essential,  nor  puts  in  any  thing  superfluous." 

J.  R.  COMPTON, 

Cashier  of  the  Niagara  Bank,  Lockport,  N.  Y. 

"  I  admire  your  system  of  Book-keeping.  Since  I  acquired  a  knowledge  of  it,  some  years 
since,  through  Mr.  David  Parsons,  I  have  put  it  in  practice  in  different  branches  of  busi- 
ness, and  have  always  found  it  work  like  a  charm.  I  have  recommended  it  to  my  friends 
as  containing  all  that  is  necessary  to  make  the  most  thorough  accountant." 

R.  LAMB, 
Cashier  People's  Bank,  Bellefontaine,  Ohio. 

"  Duff's  Book-keeping  is,  without  doubt,  the  best  adapted  to  a  business  education  ever 
published.     Students  save  about  half  the  time  and  labor  required  by  other  systems." 

JOHN  J.  JONES, 
Book-keeper  First  National  Bank,  Wheeling,  Va. 

"  The  new  method  of  checks  and  balances  will,  if  carried  out,  prevent  errors,  or,  if  made, 
they  will  be  more  readily  found  than  by  any  other  system." 

DAVID  L.  BROWN, 

Late  Book-keeper  to  the  Merc,  and  Manuf.  National  Bank,  Pittsburgh. 

"  It  is  in  every  way  calciriated  to  impart  that  knowledge  necessary  for  the  experienced 
book-keeper.     Every  thing  is  made  plain  and  easy  to  be  understood." 

J.  CAROTHERS, 

-'  Formerly  Banker,  Wood  Street,  Pittsburgh. 

"  Your  work  on  Book-keeping  is  the  most  clear  and  comprehensive  that  I  have  met 
with."  JOHN  SNYDER, 

Late  Cashier  Bank  of  Pittsburgh. 

"  It  is  evident  that  you  have  brought  to  the  study  of  Book-keeping  a  clear  head  which 
has  lost  none  of  that  clearness  by  the  long  cultivation  of  an  accurate  science.  It  is  impos- 
sible to  make  the  subject  of  accounts  more  easy  of  comprehension  to  the  young  beginner; 
and,  what  is  often  still  more  difficult,  you  have  made  it  so  to  the  old  learner." 

W.  H.  DENNY, 
Late  Cashier  of  the  Merchants'  and  Manufacturers'  National  Bank,  Pittsburgh. 

"  I  knew  little  or  nothing  of  Book-keeping  when  I  entered  your  College.  Since  leaving 
it  I  have  had  charge  of  the  books  of  this  banking  firm  for  nearly  six  years,  and  have  kept 
them  without  difficulty.  During  my  leisure  hours  I  settled  up  the  books  of  a  mercantile 
firm,  and  have  met  with  nothing  but  what  was  fully  explained  in  your  course  of  instruc- 
tion." M.  HUNNINGS, 

Of  the  firm  of  Kramer  &  Rahm,  Bankers,  Pittsburgh. 

"  I  took  charge  of  the  books  of  this  extensive  banking-house  immediately  on  leaving  your 
classes,  and  have  every  evidence  that  I  give  them  perfect  satisfaction." 

J.  W.  DAVITT, 

Of  the  firm  of  Kramer  &  Rahm,  Bankers,  Pittsburgh. 


"  My  tuition  fee  in  Duff's  College  and  the  study  of  his  new  system  of  accounts  was  among 
the  best  investments  I  ever  made."  C.  E.  BABCOCK, 

Book-keeper  State  Bank  of  Iowa,  Fort  Madison. 
391 


EECOMMENDATIONS. 


RECOMMENDATIONS. 


THE   FOLLOWING  RECOMMENDATIONS   INDICATE   THE   PUBLIC   SENTIMENT   IN 

REFERENCE   TO   THIS   WORK. 

Extract  from  the  official  report  of  a  Special  Committee  of  Merchants  of  the  Chamber  of 
Commerce  of  the  city  of  New  York  : 

Chamber  op  Commerce,  New  York,  Feb.  6, 1849. 
At  a  regular  meeting  of  the  Chamber,  held  this  day,  the  following  report  was  presented, 
accepted,  and  a  copy  ordered  to  be  transmitted  to  Mr.  Duff.  The  committee  to  whom  was 
referred  the  subject  of  Mr.  Duff's  work  on  Book-keeping, -i?epor?,  That  they  have  examined 
the  work  submitted  to  them,  and  deem  the  fayorable  opinions  which  have  already  been  ex- 
pressed by  gentlemen  of  competent  authority,  and  prefixed  to  its  pages,  well  deserved,  and 
in  this  case  very  properly  bestowed. 

Respectfully  submitted, 
(Signed)  CHARLES  M.  LEUPP,  Merchant. 

LEOPOLD  BIERWIRTH,  do. 
ROBERT  KELLY, 

President  of  the  Board  of  Education. 
Extract  from  the  Minutes. 
Prosper  M.  Wetmore,  Secretary. 

Extract  from  a  report  of  a  Special  Committee  of  Merchants  and  Accountants,  appointed 
by  the  Board  of  Managers  for  the  American  Institute,  to  examine  this  work : 

"  Your  committee  are  so  favorably  impressed  with"  the  proposed  improved  method  of  Mr. 
Duff,  that  they  unanimously  concur  in  the  opinion  of  its  utility,  and  that  the  public  would 
be  benefited  by  adopting  it." 

I  certify  that  the  foregoing  is  a  true  copy  of  a  Report  of  a  Special  Committee,  made  to 
and  adopted  by  the  American  Institute  of  the  city  of  New  York. 

GURDON  J.  LEEDS,  Recording  Secretary. 

"  It  contains  much  matter  that  is  important  and  interesting  to  the  merchant  and  man  of 
business,  to  whom  it  will  be  found  highly  useful.''  C.  0.  HALSTEAD, 

Late  President  of  Manhattan  Bank,  N.  Y. 

"  It  is  by  far  the  most  complete  work  of  the  kind  I  have  ever  seen." 

JAMES  B.  MURRAY, 

President  Exchange  National  Bank,  Pittsburgh. 

"  I  differ  entirely  from  those  who  think  the  counting-house  the  best  place  to  learn  Book- 
keeping in.  From  this  work  it  is  learned  in  its  application  to  every  form  of  business,  un- 
trammelled by  the  peculiar  details  of  any  one  kind  of  business." 

THOMPSON  BELL, 
President  Commercial  Bank  of  Pittsburgh. 

"  No  other  work  upon  Book-keeping,  so  far  as  my  knowledge  of  them  extends,  explains 
the  subject  with  so  much  clearness  and  simplicity."  F.  W.  EDMONDS, 

Late  Cashier  Mechanics'  Bank,  Wall  Street,  N.  Y. 
390 


"  It  gives  a  clear  insight  into  this  science  through  all  its  gradations,  from  the  simple 
style  of  the  retailer  to  that  required  for  the  most  varied  and  complicated  commercial  busi- 


ness. 


A.  S.  ERASER, 
Cashier  Seventh  Ward  Bank,  N.  Y 


"  I  graduated  in  Duff's  College  in  about  half  the  time  that  I  expected.     His  admirable 
system  leaves  out  nothing  essential,  nor  puts  in  any  thing  superfluous." 

J.  R.  COMPTON, 

Cashier  of  the  Niagara  Bank,  Lockport,  N.  Y. 

^  "  I  admire  your  system  of  Book-keeping.  Since  I  acquired  a  knowledge  of  it,  some  years 
since,  through  Mr.  David  Parsons,  I  have  put  it  in  practice  in  different  branches  of  busi- 
ness, and  have  always  found  it  work  like  a  charm.  I  have  recommended  it  to  my  friends 
as  containing  all  that  is  necessary  to  make  the  most  thorough  accountant." 

R.  LAMB, 

Cashier  People's  Bank,  Belief ontaine,  Ohio. 


"  Duff's  Book-keeping  is,  without  doubt,  the  best  adapted  to  a  business  education  ever 
published.     Students  save  about  half  the  time  and  labor  required  by  other  systems." 

JOHN  J.  JONES, 
Book-keeper  First  National  Bank,  Wheeling,  Va. 

"  The  new  method  of  checks  and  balances  will,  if  carried  out,  prevent  errors,  or,  if  made, 
they  will  be  more  readily  found  than  by  any  other  system." 

DAVID  L.  BROWN, 

Late  Book-keeper  to  the  Merc,  and  Manuf.  National  Bank,  Pittsburgh. 


u 


It  is  in  every  way' calculated  to  impart  that  knowledge  necessary  for  the  experienced 
book-keeper.     Every  thing  is  made  plain  and  easy  to  be  understood." 

J.  CAROTHERS, 

'  Formerly  Banker,  Wood  Street,  Pittsburgh. 

"  Your  work  on  Book-keeping  is  the  most  clear  and  comprehensive  that  I  have  met 
with."  JOHN  SNYDER, 

Late  Cashier  Bank  of  Pittsburgh. 

"  It  is  evident  that  you  have  brought  to  the  study  of  Book-keeping  a  clear  head  which 
has  lost  none  of  that  clearness  by  the  long  cultivation  of  an  accurate  science.  It  is  impos- 
sible to  make  the  subject  of  accounts  more  easy  of  comprehension  to  the  young  beginner; 
and,  what  is  often  still  more  difficult,  you  have  made  it  so  to  the  old  learner." 

W.  H.  DENNY, 

Late  Cashier  of  the  Merchants'  and  Manufacturers'  National  Bank,  Pittsburgh. 


S 


"  I  knew  little  or  nothing  of  Book-keeping  when  I  entered  your  College.  Since  leavin 
it  I  have  had  charge  of  the  books  of  this  banking  firm  for  nearly  six  years,  and  have  kept 
them  without  difficulty.  During  my  leisure  hours  I  settled  up  the  books  of  a  mercantile 
firm,  and  have  met  with  nothing  but  what  was  fully  explained  in  your  course  of  instruc- 
tion." ,  M.  HUNNINGS, 

Of  the  firm  of  Kramer  &  Rahm,  Bankers,  Pittsburgh. 

"  I  took  charge  of  the  books  of  this  extensive  banking-house  immediately  on  leaving  your 
classes,  and  have  every  evidence  that  I  give  them  perfect  satisfaction." 

J.  W.  DAVITT, 

Of  the  firm  of  Kramer  &  Rahm,  Bankers,  Pittsburgh. 

"  My  tuition  fee  in  Duff's  College  and  the  study  of  his  new  system  of  accounts  was  among 
the  best  investments  I  ever  made."  C.  E.  BABCOCK, 

Book-keeper  State  Bank  of  Iowa,  Fort  Madison. 
391 


II 


II 


I 

« 


RECOMMENDATIONS. 

"  An  experience  of  nine  years  in  business  has  not  yet  brought  any  transaction  into  my 
hand  so  difficult  as  many  of  your  class  exercises."  E.  SPAHR, 

Book-keeper  to  the  National  Bank  of  Commerce,  Pittsburgh. 


The  following  letter  indicates  the  perfection  of  the  course  of  study  in  this  old  and  popu- 
lar institution : 

"  With  no  previous  knowledge  of  accounts,  nor  practice  in  any  kind  of  book-keeping,  ex- 
cept a  course  of  study  in  Duff's  College^  from  his  system  of  Book-keeping,  I  took  charge  of 
the  books  of  this  bank.  This  treatise  certainly  combines  the  most  comprehensive  system 
of  science  and  practice  in  accountantship  now  before  the  public.  It  is  so  judiciously  diversi- 
fied that  it  fits  the  student  for  keeping  accounts  in  any  kind  of  business." 

FRED.  L.  RAINBOW, 
Book-keeper  Mechanics'  National  Bank,  Pittsburgh. 


*'  I  consider  this  treatise  the  most  comprehensive  and  complete  system  of  Book-keeping 
that  I  have  met  with."  T.  B.  DICKSON, 

Individual  Book-keeper  Merc,  and  Manuf.  National  Bank,  Pittsburgh. 

**  I  readily  concur  in  all  that  is  said  of  this  work  by  other  competent  judges.  No  writer 
upon  Book-keeping  has  had  the  advantage  of  such  an  extensive  and  varied  experience  in 
business.  I  have  known  him,  personally,  for  upwards  of  twenty  years ;  a  great  part  of  that 
time  as  an  extensive  American  and  European  merchant,  as  an  extensive  ship-owner,  and  as 
a  bank  director,  &c.,  and  in  all  these  departments  he  has  borne  the  reputation  of  the  highest 
order  of  business  talents.  Every  thing  said  or  written  by  such  a  person,  on  the  subject  of 
business,  is  of  interest,  not  only  to  young  men  designed  for  business,  but  for  those  already 
engaged  in  it."  JOHN  W.  BURNHAM, 

Merchant,  No.  8  South  Street,  New  York. 

"  You  have  made  good  use  of  your  long  experience  as  a  merchant  in  making  plain  many 
of  those  matters  of  business,  the  want  of  due  comprehension  of  which  so  often  occasions 
serious  difficulties  in  the  counting-house.  The  accuracy  and  conciseness  manifested 
throughout  the  whole  work,  bear  testimony  to  the  great  care  and  labor  you  have  bestowed 
upon  it."  RICHARD  IRVIN, 

Merchant,  98  Front  Street,  New  York. 

"  Mr.  Duff  is  a  man  of  rare  qualifications  for  business, — a  man  that  will  go  through  with 
whatever  he  takes  in  hand.  His  system  of  Book-keeping  should  be  studied  by  every  one 
who  has  any  thing  to  do  with  dollars  and  cents."  JOHN  McD.  TAYLOR, 

Merchant,  Union  Street,  New  Orleans. 


"  Mr.  Duff  is  a  merchant  of  the  first  respectability." 


J.  LANDIS, 

Merchant,  New  Orleans. 


"  Mr.  Duff  has  been  recommended  to  me  as  a  merchant  of  the  highest  respectability." 

0.  H.  BLISS, 
Merchant,  New  Orleans. 

"  I  have  always  pronounced  your  system  the  most  thorough  and  diversified  course  of 
training  for  business,  before  the  public.  The  most  experienced  accountant  will  recognize, 
in  your  plan  of  rectifying  deranged  books,  a  new  and  most  ingenious  method  of  bringing 
order  out  of  confusion."  ANGUS  CAMPBELL, 

Book-keeper  to  Burdett  &  Choate,  Wholesale  Commission 
Merchants,  Memphis,  Tenn. 

392 


KECOMMEISTDATIONS. 

"  Your  system  of  accounts  is  excelsior.  Every  man  that  studies  it  as  you  direct  cannot 
help  going  into  business  a  first-class  accountant,  and  with  a  good  general  business  know- 
ledge that  it  will  take  years  to  acquire  by  practice.  Your  Bank  Check  Book  is  an  improve- 
ment of  great  value  in  all  large  houses."  W.  D.  ELLIOTT, 

°  Book-keeper  to  Smith,  Sherwood  &  Co.,  Merchanta. 

St.  Louis,'  Mo. 

*'  I  have  been  thirty  years  a  practical  book-keeper,  and  during  my  practice  I  have  never 
before  met  with  a  work  which  so  fully  explains  the  whole  subject  of  accounts;  in  fact,  it  is 
the  first  treatise  that  I  have  seen  from  which  a  thorough  practical  knowledge  of  the  science 
can  be  obtained."  JOHN  CAMPBELL, 

Merchant,  53  John  Street,  New  1  ork. 

"  There  is  no  other  system  of  Book-keeping  in  use  that  so  thoroughly  and  practically 
elucidates  this  part  of  a  business  education ;  and  your  impressive  and  interesting  lectures 
on  business,  commercial  law,  banking,  &c.,  will  be  useful  to  me  through  life." 

X.  Ji.  A-UAJyife, 
Book-keeper  for  McElroy,  Dickson  &  Co.,  Merchants,  Pittsburgh. 


"  With  no  previous  knowledge  of  accounts,  except  your  course  of  study,  I  took  charge 
of  the  books  of  this  extensive  business,  and  have  kept  them  satisfactorily  for  nearly  eight 
vears.  To  obtain  the  best  business  education,  I  say  go  at  once  to  the  best  college,  which 
I  am  positive  is  yours."  CHARLES  F.  WELLS, 

Book-keeper  for  B.  L.  Fahnestock  &  Co.,  Importers  and 
Wholesale  Druggists,  Pittsburgh,  Pa. 

"  With  no  other  education  than  I  got  in  a  common  country  school,  your  instruction  in 

Book-keeping  enabled  me  to  take  charge  of  the  books  of  an  extensive  firm  in  Wood  Street. 

and  finally  of  the  books  of  this  department  of  the  Railroad  Company,  which  I  have  now 

kept  successfully  for  eight  years."  J-  K..  SMITH, 

'^  '  Book-keeper,  Treasurer  of  the  Pittsburgh,  Fort  Wayne 

&  Chicago  Railroad  Co. 

*'  I  have  tested  the  thorough  business  training  I  received  in  your  excellent  establish- 
ment, bv  many  years'  successful  practice  in  some  of  the  largest  firms  in  the  city." 
'    ^        ^  ^  ^  SIMON  JOHNSTON, 

Druggist,  Pittsburgh. 

"  The  accountant  who  keeps  his  books  upon  your  system  will  have  the  advantage  of  im- 

nrovements  which  are  not  found  in  any  other  system." 

^  HARVEY  M.  COWAN, 

Late  Book-keeper  to  Messrs.  J.  Wood  well  &  Co., 
Hardware  Merchants,  Pittsburgh. 

"  At  the  age  of  seventeen  I  graduated  in  your  College.  I  have  since  kept  books  in  banks 
in  Springfield,  Illinois,  and  St.  Louis,  Missouri,  until  my  health  compelled  me  to  return  to 
this  vicinity,  where  I  am  keeping  the  books  of  this  extensive  firm.  It  is  due  to  you  to  say, 
that  the  longer  I  have  practised  upon  it,  the  more  I  am  satisfied  that  your  judiciously 
arranged  and  diversified  course  of  study  is  superior  to  all  others  that  I  have  seen,  in  pre- 
paring a  young  man  for  any  branch  of  business."  T.  K.  BABCOCK, 

Book-keeper  to  the  Cambria  Iron  Works,  Johnstown,  Pa. 

"  Although  the  books  I  am  keeping  are  widely  different  from  what  I  studied  with  you, 
yet  that  complete  knowledge  of  the  principles  of  the  science  which  I  obtained  in  your 
classes  has  enabled  me  to  conduct  every  thing  successfully." 

GEO.  W.  JACKSCN, 
Book-keeper  to  the  N.  W.  Virginia  R.  R.  Co.,  Grafton,  Va. 
393 


I 


EECOMMENDATIONS. 

^'  We  have  used  your  Book-keeping  for  eight  years.  During  this  time  I  have  examined 
every  other  work  I  could  hear  of,  but  have  found  none  so  judiciously  arranged  and  so  com- 
prehensive in  all  that  relates  to  an  accountant's  education.  This  fact  is  also  attested  by 
numbers  who  had  first  studied  other  systems  and  afterward  graduated  with  us." 

T.  H.  POLLOCK, 

Principal  Pollock's  Commercial  College,  Chestnut  Street, 

Philadelphia,  Pa. 


*'I  do  not  hesitate  to  say  that  this  is  the  most  perfect  work  that  I  ever  examined  on  the 
suDject.  rp  jj   TUTTLE, 

Banker,  Philadelphia. 

•'  Four  system  of  accounts  is  in  every  way  thorough,  without  any  superfluous  matter. 
Since  leaving  your  Institution  I  have  met  many  of  your  pupils  who  express  the  same  opi- 

°'''°-  ^  JOHN  S.  WILSON, 

Of  Messrs.  Kilgore,  Wilson  &  Co.,  Merchants,  Philadelphia. 

"  I  believe  your  system  to  be  the  best  now  taught."  B.  McKENNA 

Of  A.  Diamond  &  Co.,  Booksellers  and  Stationers,  Philadelphia. 

"  Book-keeping,  as  elucidated  by  your  system,  is  the  most  thorough  and  complete  extant, 
bmce  i  studied  with  you,  I  have  had  seven  years'  experience  in  the  practice  of  it." 

„    ,  ,  CHAKLES  FITCH, 

Book-keeper  to  Messrs.  Allibone  &  Jenks,  Merchants,  Philadelphia. 

"  I  believe  your  course  of  study  to  be  far  superior  to  that  given  in  Eastern  cities,  in  this 
branch  of  education."  B.  K.  JAMISON 

Book-keeper  to  Messrs.  R.  J.  Ross  &  Co.,  Bankers,  Philadelphia. 

"  My  present  business  brings  before  me  nearly  every  system  of  Book-keepin-  in  use,  and 
It  IS  to  your  admirable  system  of  accounts,  and  your  masterly  manner  of  teaching  it  that  I 
owe  my  qualification  for  effecting  the  intricate  settlements  brought  into  my  hands  bv  this 
b^^°««s.  JAMES  FULTON, 

Adjuster  of  Fire  Insurances,  424  Chestnut  Street,  Philadelphia. 

"  Since  graduating  in  your  College,  I  have  settled  several  sets  of  complicated  books 
1  am  now  satisfied  that  I  have  mastered  the  science  under  your  instruction,  and  recommend 
all  who  desire  to  become  expert  and  scientific  accountants,  to  go  at  once  to  your  establish- 

^^^^-  J.  A.  STEELE, 

Book-keeper  to  Messrs.  Sledge  &  Cress,  Merchants, 
Chappell  Hill,  Texas. 

"I  shall  ever  regard  your  instruction  in  Book-keeping,  and  your  impressive  and  interest- 
ing lectures  upon  business,  as  my  most  valuable  preparation  for  my  present  business  Your 
system  of  accounts  can  never  be  excelled.     It  prepares  one  for  every  kind  of  business." 

^  «  R.  J.  BROWN, 

Of  Brown  &  Brother,  Druggists,  Leavenworth  City,  Kansas. 

"I  saj-  from  experience,  that  no  one  who  graduates  in  your  system  of  Book-keepincr  as 
you  teach  it,  will  have  any  trouble  in  keeping  any  kind  of  books." 

S.  M.  RANKIN, 
Of  Sample  &  Rankin,  Bankers,  Keokuk,  Iowa. 

"  I  ^a/.f  ?  i^^ea  that  your  course  of  instruction  was  so  much  a  course  of  practice  until 
I  applied  it  m  business.  Your  system  of  Book-keeping  has  business  letters,  accounts  in- 
voices  notes,  acceptances,  checks,  &c.,  so  thoroughly  interwoven  with  the  exercises  in 
Jiook-keeping  that  I  have  met  with  nothing  in  business  that  your  excellent  course  of  train- 
mg  has  not  fully  prepared  me  for."  JAMES  H.  SMITH 

Book-keeper  for  Smith  &  Baker,  Wool  Merchants,  Newark,'  Ohio 
394 


RECOMMENDATIONS. 

"  I  experienced  no  difficulty  in  applying  your  excellent  instruction  to  immediate  prac- 
tice, particularly  your  six-columned  Journal,  which  proves  to  be  a  great  economizer  of  time 
and  labor,  and  a  safeguard  against  error."  M.  S.  STOKES, 

Book-keeper  to  Messrs.  R.  S.  Hollins  &  Co.,  Merchants, 

Nashville,  Tenn. 

"  We  take  pleasure  in  testifying  to  the  truth  of  Mr.  Stokes'  statements  in  regard  to  your 
system  of  Book-keeping,  and  fully  concur  with  him  in  recommending  it  to  the  public  as 
safe,  accurate,  and  easily  comprehended."  R.  S.  HOLLINS  &  CO. 

"  Your  six-columned  Journal  is  a  model  of  accuracy  and  brevity,  not  likely  soon  to  be 
improved  upon ;  and  your  method  of  rectifying  deranged  books  is  a  most  valuable  ap- 
pendage to  your  system,  that  I  have  not  seen  nor  heard  of  elsewhere." 

A.  J.  McClelland, 

Book-keeper,  Cumberland  Iron  Works,  Tenn. 

"  I  found  no  difficulty  in  applying  your  system  to  practice.  Your  six-column  Journal 
saves  a  large  amount  of  writing,  and  is,  therefore,  better  adapted  to  my  business  than  any 
other  system  of  Book-keeping  that  I  have  seen."  P.  J.  FLINDALL, 

Merchant,  Trenton,  Canacili  West. 

"  I  am  getting  on  finely  with  the  books  and  the  business  of  this  firm.  Success  to  your 
valuable  Institution  and  to  all  who  avail  themselves  of  the  advantages  of  your  instruction 
from  your  system  of  Book-keeping — the  best  of  all  systems  extant." 

R.  C.  ARMSTRONG, 

Book-keeper  to  Messrs.  Hibbert  &  Son,  Merchants,  Louisville,  Ky. 

"  I  advise  all  my  friends  to  enter  your  well-organized  Institution.  It  is  certainly  head- 
quarters for  a  thorough  commercial  education."  WM.  B.  MORGAN, 

U.  S.  Treasury,  Washington,  D.  C. 

"  With  no  previous^ knowledge  of  accounts  or  business  but  what  I  learned  in  less  than 
eight  weeks  under  that  able  and  systematic  course  of  instruction  for  which  your  establish- 
ment has  been  so  long  and  so  justly  celebrated,  I  have  since  kept  books  for  several  years 
in  two  mercantile  establishments ;  I  have  several  times  successfully  rectified  deranged  books, 
changing  the  Single  Entry  Ledger  into  Double  Entry,  &c.  Since  1861,  my  position  in 
this  Department  required  the  greatest  skill  and  accuracy  in  Book-keeping,  the  duties  being 
more  varied  and  chaligeable  than  in  any  other  Bureau  in  the  Department.  Few  of  your 
graduates  have  had  their  proficiency  more  thoroughly  tested  than  mine ;  and  I  say  to  all 
desiring  a  thorough  business  education,  by  no  means  miss  your  College  and  your  lectures 
upon  business.     I  speak  of  their  value  from  experience." 

THOS.  GLEN  JONES, 
U.  S.  Treasury  Department,  Washington,  D.  C. 

*'  DuflF's  Book-keeping  is  an  excellent  text-book  for  schools.  Its  teachings  are  very 
lucid,  while  it  embraces  many  points  of  interest  to  be  found  in  no  other  work  on  Book- 
keeping extant."  J.  R.  WEBSTER, 

Teacher  of  Book-keeping,  Central  High  School,  Baltimore. 

"  After  a  year's  trial  of  it  in  my  classes,  I  find  the  instruction  conveyed  by  your  Book- 
keeping is  more  complete  and  practical  than  any  other  I  have  used." 

JOHN  SHEPHERD, 
Late  Teacher  of  Book-keeping,  Columbia  College,  N.  Y. 


''  Having  ascertained  that  DuflF's  system  of  business  accounts  is  the  best  in  use,  we  have 
introduced  it  as  a  text-book  in  this  college."  JOHN  K.  STEWART, 

Late  Professor  of  Book-keeping,  Southern  Commercial  College, 

Richmond,  Va. 

395 


EECOMl^IENDATIONS. 

"  The  crowning  excellence  of  your  system  of  Book-keeping  is  the  judicious  abridgment 
of  all  unnecessary  details  and  repetitions,  reducing  the  time  of  study  to  about  half  that  re- 
quired in  other  Commercial  Colleges.  And  my  employer  says  he  has  never  seen  a  person 
direct  from  College  that  went  ahead  with  all  their  books  so  promptly  and  accurately  as 
I  ^ave."  WILSON  S.  ROOSE, 

Book-keeper  for  Ignatz  &  Herzog,  Merchants,  Chicago,  111. 

"  I  haye  had  no  difficulty  with  my  books.  I  see  now  the  great  advantage  and  superiority 
of  your  well-arranged  system  of  instruction  in  Book-keeping." 

WM.  M.  HORGAN, 

Book-keeper  to  J.  B.  Shay,  Merchant,  Chicago,  111. 

"I  have  already  successfully  tested  the  value  of  your  admirable  rules  for  settling  old 
business  books  and  opening  new  ones  from  them,  and  now  readily  subscribe  to  all  that  your 
former  graduates  have  said  of  the  superiority  of  your  system  of  Book-keeping." 

D.  C.  BERGUNDTHAL, 

Book-keeper  for  S.  W.  Prather,  Merchant,  Wheeling,  W.  Va. 


use 


"  I  believe  your  system  of  accounts,  and  manner  of  teaching  it,  unequalled  by  any  in 


R.  T.  KITTS, 

Book-keeper  to  McCullough,  Morris  &  Co.,  Wholesale  Grocers, 

Cincinnati,  Ohio. 


"Without  any  previous  knowledge  of  business  books  except  a  course  of  study  from  Duff's 
Book-keeping,  I  have  kept  the  books  of  this  extensive  business  for  about  three  years.  In 
my  opinion,  a  more  complete  system  of  science  and  business  practice  has  never'  been 
printed."  W.  L.  KEEPERS, 

Book-keeper,  Rar -oon  Iron  Works,  Greenupsburg,  Ky. 

"  Duff's  system  of  accounts  is  the  most  perfect  I  have  seen.  It  contains  many  improve- 
ments, abbreviations,  and  guards  against  errors  which  I  have  not  seen  nor  heard  of  else- 
where." JAMES  H.  McCLOY, 

Book-keeper  W.  McClintock's  Carpet  Warehouse,  Pittsburgh. 

"  I  fully  concur  in  all  that  I  have  heard  in  commendation  of  your  system  of  merchants' 
accounts.  Many  years'  experience  in  keeping  books  in  this  and  other  houses,  since  I 
studied  it,  enables  me  to  say  that  I  consider  it  decidedly  the  best  work  of  the  kind  in  use." 

JAMES  E.  DICKSON, 
Book-keeper  for  Mitchell,  Stevenson  &  Co.,  Iron  Founders 
and  Merchants,  Pittsburgh. 

"  This  work  comes  to  us  with  such  high  recommendations,  from  parties  well  able  to  judge 
of  its  merits,  that  we  have  no  hesitation  in  cordially  inviting  attention  to  it  as  a  work  of 
great  utility  to  merchants." — New  York  Albion. 

"  Evidently  the  production  of  one  thoroughly  versed  in  the  art  and  science  of  accounts, 
and  artistic  in  his  views  and  manner  of  elucidating  them." — Journal  of  Commerce. 


"  Numerous  as  are  the  publications  already  before  the  public  on  this  important  branch 
of  mercantile  education,  we  think,  from  the  emphatic  testimonials  appended  to  the  work, 
that  Mr.  Duff  has  succeeded  in  effecting  a  more  ready  and  desirable  method  of  teaching  and 
reducing  to  practice  this  great  essential  in  the  conduct  of  mercantile  affairs." — New  York 
Evening  Express^  October  30. 

396 


KECOMMENDATIONS. 

FROM  THE  PITTSBURGH  GAZETTE. 
«  Duff's  BooK-KEEPiNG.-This  has  become  the  standard  work  upon  commercial  science^ 
No  work  yet  published  so  thoroughly  unfolds  the  whole  subject^  ^L^^.J^ars  .riva^ 
is  the  only  work  yet  published  in  this  country  which  exemplifies  the  merchants  private 
Led-er,-an  arrangement  by  which  the  results  of  the  business  cannot  be  known  by  the 
principal  LedL ;  f  n  arrangement  which  mercantile  men,  conductmg  a  large  business,  know 
theXe  of     N^  possible  good  can  arise  from  a  needless  exposure  of  any  man's  business. 

"We  have  in  a  former  number  spoken  of  Mr.  Duff's  new  and  excellent  treatise  upon 
merchants'  accounts,  published  by  the  Messrs.  Harpers.     Eve^  ^^/^^^^^^^ 
an  indispensable  addition  to  his  library;  and  there  are  but  few  accountants  so  old,  or  so 
wise,  as  not  to  derive  valuable  information  from  it."-Eunt's  Merchants'  Magazine,  A.  1. 

"  A  few  weeks'  study  in  Duff's  College  prepared  me  for  ^^^^P^"?^^^^^^  "^*'°- 

sive  firm      I  have  seen  no  other  system  so  complete."  EDWIN  Uh^DtAi, 

Sive  nrm.     x  uavc  d  j  Book-keeper  to  the  Waterbury  &  Detroit  Copper  Co., 

Detroit,  Mich. 

"  DufF'8  Book-keeping  is  so  much  of  a  self-instructor,  that  I  graduated  in  twenty-one 
days,  and  haye  kept  books  ever  since  without  difficulty."  „^„,t  ™;  ^S,;  n.  y. 

"  During  mv  former  occupation  of  a  teacher  of  Book-keeping,  few  persons  took  greater 
pains  to  compare  different  treatises  upon  this  science,  with  a  view  to  select  the  most  thorough 
Ld  comprehensive;  and  I  state,  without  hesitation,  that  Duff's  Book-keepmg  will  impart 
a  more  perfect  and  practical  knowledge  of  the  science,  in  less  time  with  ess  labor  to  the 
learner,  and  with  less,  trouble  to  the  teacher,  than  any  treatise  that  ^*'^,y«^^PP|*^^'*  "P"" 

the  subject.'  General  Book-keeper  for  B.  A.  Fahnestock's  Son  &  Co., 

Wholesale  Druggists,  Pittsburgh. 

"  My  brother  and  a  number  of  my  young  business  friends  having  at  different  times  been 
educated  for  business  from  Duff's  Book-keeping,  and  they  all  havmg  afterwards  proved  to 
be  highly  accomplished  accountants  and  business  ""f  n- 1  tl^^'^f^"-*  f  ^^I '''Jf  ^^^  ^'^""^ 
of  eLLn  is  brought  to  full  perfection  in  this  work."        ^^^^  J^^ES  BOBB,  ^_^^_^^_ 

Pittsburgh,  Pa. 

"  Duff's  system  of  Merchants'  Accounts  exhibits  in  a  clear,  compact,  and  condensed  form, 
without  being  superficial,  all  the  essentials  of  a  thorough  ^^^^^^^^^^^^^'^^^^^^ 

Book-keeper  Iron  City  National  Bank,  Pittsburgh. 

"I  am  recommending  all  my  friends  to  your  Commercial  CoUe^.  My  cou^e  of  study 
from  your  excellent  treftise  on  merchants'  accounts,  V^^V^^l^r^^or^^^^n,^^^^^^^  ^' 

this  banking-house.  Book-keeper  to  Austin,  Elder  &  Fletcher,  Bankers, 

Chambersburg,  Pa. 


.'  I  prefer  your  Book-keeping  and  plan  of  instruction  to  any  I  I'^'^g'^^jj^VoN '""'=*" 
in  thi/city.  'l  have  no  trouble  m  keeping  our  book.  _^^^^^  ,„  ^^H^'ILf i  Co.Srchan^ 

Philadelphia. 
397 


RECOMMENDATIONS. 

"  I  now  hold  a  clerkship  of  the  first  class  in  this  deDartment      T  PRf^Am  u  «      •  -i 

Treasury  Department,  Washington,  D.C. 

•moi  ^  T  ^r  ^  ""^  n^  '°.*^^  counting-room  of  these  extensive  mills,  for  which  I  was  fittpd 
ma  nly  by  the  excellent  busmess  education  I  received  in  your  collegk  I  nrfuiry  concur 
mall  that  your  other  numerous  students  have  said  of  the  superiority  of  your  ystemT 
Book-keeping  and  business  education/'  ^  ]^^  p":  HOOPER 

Clerk  Salisbury  Mills,  Amesbury,  Mass. 

"I  have  had  charge  of  this  bank  as  cashier  since  1st  October  last  and  for  mv  abiHtv  in 
discharge  the  duties  of  this  responsible  office  you  are  entitled  to  the  crpdi?^  TkIV 
months  spent  in  your  noble  eduLtional  establisLent  st^dybg  y^^^^^^  systm  ^7 

accounts  has  been  of  great  value  to  me."  ^      L.  W    VALE 

Cashier  First  National  Bank,  Mount  Pleasait,  Iowa. 


398 


^ 


H^ 


DUFF'S  MERCANTILE  COLLEGE, 

No.  37  FIFTH  STREET,  PITTSBURGH,  PA. 

POUNDED  IN  1840, 


AND 


INCORPORATED  BY  THE  LEGISLATURE  OF  PENNSYLVANIA  WITH  PERPETUAL  CHARTER. 
THE  BUSINESS  MAWS  FAVORITE  COLLEGE  FOR  THE  LAST 

TWENTY-SEVEN  YEAES. 

It  is  believed  to  be  the  only  institution  of  the  kind  in  America  founded 
and  conducted  by  an  experienced  merchant.  Our  course  of  original  lectures 
upon  the  details  of  -^^-.-.•■■#«#« 

^  ACTUAL  BUSINESS 

are  to  one  going  into  business  on  his  own  account,  worth  more  than  his 
tuition  fee,  and  may  save  him  thousands  of  dollars  in  experimental  know- 
ledge, that  will  take  him  years  to  acquire  in  business.  In  these  lectures 
we  have  no  competitors,  as  none  but  an  experienced  merchant  can  impart 
the  practical  information  which  they  contain.  It  will  also  be  found  that  our 
system  of  accounts  is,  with  one  exception,  the  only  modern  one  m  use,  in- 
cluding comprehensive  exercises  in 

BUSINESS  WITH  FOREIGN  COUNTlRIES. 

Our  system  of  instruction,  thus  extended  into  fields  of  business  wholly 
omitted  by  others,  enables  us  to  present  our  students  with  a  valuable  col- 
lection of  .^ .—.—-. «».»« 

BUSINESS  FORMS 

in  every  department  of  inland  and  fbreign  business.     Regular  lectures  upon 
the 

are  delivered  to  the  classes.      One  of  the    most   accomplished    and    ex- 
perienced teachers  of  Business  and  Ornamental 

PENMANSHIP 

is  in  constant  attendance  on  the  classes. 

Jfbr  Terms  and  all  other  particulars,  send  for  our  Tamphlet  Circular,  pp^7S. 

ADDRESS 

P.  DUFF  &  SON, 

3gg  PITTSBURGH.  PA. 


EXTRACTS  FROM  THE  CHARTER 


OF 


DUFF'S  MERCANTILE  COLLEGE. 


The  preamble  of  the  Act,  after  reciting  the  circumstances  connected  with  the  establishment 
of  the  Institution  by  the  proprietor,  in  1840,  proceeds  :— 

"And  having,  through  his  professional  labors  and  publications  upon  commercial  science, 
greatly  improved  and  enlarged  the  facilities  for  obtaining  a  thorough  mercantile  education, 
in  order  to  give  increased  efficiency  and  permanence  to  his  laudable  efforts  in  promoting  the 
cause  of  Commercial  education,  and  thereby  advancing  the  ends  and  purposes  of  commerce, 
it  is  hereby  proposed  that  his  Academy  be  incorporated.     Therefore, 

"  SECTION  1.  ^e  it  enacted  by  the  Senate  and  Mouse  of  Representatives  of 
the  Commonwealth  of  Pennsylvania,  in  Gene?'al  Assembly  met,  and  it  is  hereby 
enacted  by  the  authority  of  the  same,  That  there  be,  and  hereby  is  erected  and  estab- 
lished, in  the  County  of  Allegheny,  in  this  Commonwealth,  a  College  for  the  education  of 
merchants,  and  others,  in  the  various  branches  of  literature  and  science  immediately  con- 
nected with  a  thorough  mercantile  education,  by  the  name,  style,  and  title  of  'DUFF'S 
MERCANTILE  COLLEGE  OF  PENNSYLVANIA,'  to  be  permanently  located  in  the  city  of 
Pittsburgh,  in  said  county  of  Allegheny." 

(SECTIONS  2,  3,  4,  and  5  relate  to  the  government  of  the  College,— its  liabilities,  privi- 
leges, &c.) 

"  SECTION  6.  That  the  President,  Professors,  and  Tutors  for  the  time  being,  of  said 
College,  shall  constitute  the  Faculty  of  said  College,  and  shall  have  power  to  grant  and  con- 
firm such  degrees  in  the  sciences  taught  in  the  College,  to  such  students  and  graduates  of 
the  College,  and  others,  when,  by  their  proficiency  and  learning,  professional  eminence,  or 
other  meritorious  distinction,  they  shall  become  entitled  thereto,  as  they  may  see  fit,  and  to 
grant  graduates,  or  persons  on  whom  such  degrees  may  be  conferred,  diplomas,  or  certificates. 

"  SECTION  7.  No  religious  sentiments  shall  be  acwounted  a  disability  to  hinder  or  debar 
students  from  entering  the  College,  prosecuting  their  studies,  and  receiving  diplomas  or  cer- 
tificates, or  in  any  manner  to  abridge  their  privileges  or  immunities  as  students  in  any  de- 
partment of  said  College." 

(SECTIONS  8,  9,  and  10  relate  to  the  By-Laws,  Conveyances,  &c.) 
(Signed)         JOHN  CESSNA,  Speaker  of  the  Souse  of  Representatives, 
B£N«r.  MATTHEWS,  Speaker  of  the  Senate, 


Approved  the  eleventh  day  of  March,  one  thousand  eight  hundred  and  fifty-one. 

WM.  F.  JOHNSTON,  Governor  of  Pennsylvania, 


Ikckctaky's  SrncE. 


Pennsylvania^  ss.  : 

f  Ao  JutXt^^  (^tviii^f  that  the  foregoing  is  a  true  and  correct  copy  of  the  original  Act 
of  the  General  Assembly,  entitled,  "An  Act  to  Incorporate  Duff's  Mercantile  College  of  Pennsyl- 
Taaia/'  as  the  same  remains  on  file  in  this  office. 

Witness  my  hand  and  the  seal  of  the  said  office  at  Harrisburg,  this  25th  day  of 
April,  1851. 

A«  L,  BTJSSELL,  Secretary  of  the  Commonwealth, 
400 


L.S. 


COLUMBIA  UNIVERSITY  LIBRARIES 

This  book  is  due  on  the  date  indicated  below,  or  at  the 
expiration  of  a  definite  period  after  the  date  of  borrowing,  as 
provided  by  the  library  rules  or  by  special  arrangement  with 
the  Librarian  in  charge. 


DATE  BORROWED 

DATE   DUE 

DATE  BORROWED 

DATE  DUE 

« 

- 

• 

t 

1 

■    • 

C28(84a)MSO 

1 

/ 


\ 


D420 


D873 


Duff 

Mercantile  bank  and  railroad 
bookkeeping.   1870. 


COLUMBIA  UNIVERS  TY 


0041443900 


LIBRARIES 


^ 


DEC  2  6  1945 


END  OF 
TITLE 


